Trump extends tariff truce with China for 90 days
In the ongoing saga of international trade, the United States and China have maintained a complex agreement characterized by multiple layered tariffs. As of August 2025, the United States imposes an average tariff rate of about 55% on Chinese goods, while China imposes approximately a 10% average tariff on US goods.
The US-China tariff truce, extended for 90 days on August 11, 2025, halted planned tariff increases, providing short-term stability for businesses. This truce is underpinned by the 2025 Geneva framework, a reaffirmation of the trade deal that took place in June after US and Chinese official meetings, although the detailed terms have not been fully disclosed publicly.
The tariff rates are product-specific and result from a tangled history of tariff impositions dating from 2018 through the present. The Trump administration, since January 2025, intensified US tariffs broadly, raising average US tariffs on Chinese goods significantly—from approximately 20% before 2025 to the current aggregated 55% nominal rate as of mid-2025, covering the entire Chinese import portfolio into the US.
On the other hand, Chinese tariffs on US goods average about 10% but vary according to product. Some tariffs have been increased in response to US tariffs, such as 10-15% tariffs on specific US agricultural and energy products imposed since early 2025.
The US President has called on China to quadruple its purchases of U.S. soybeans, stating that increased Chinese imports of U.S. soybeans would significantly reduce the U.S. trade deficit with China. However, the American president has not specified tariffs targeting specific sectors such as automobiles, steel, aluminum, or copper in this context.
In a separate development, the precious metal gold reached a new record following an article in the Financial Times and the publication of a document by U.S. Customs, causing concern among investors who had been worried at the end of last week that some gold bars might eventually be taxed. Fortunately, the American president announced that gold would remain exempt from the new tariffs he has implemented.
As negotiations continue amid a backdrop of previous escalations and temporary freezes, both sides retain broad powers to adjust tariffs. The ongoing talks in London and Stockholm aim to prevent a new flare-up and keep the truce on track. The future of the US-China trade relationship remains uncertain, but for now, the tariff truce provides a fragile peace in the ongoing trade war.
- The ongoing US-China tariff truce, rooted in the 2025 Geneva framework, has temporarily stabilized businesses, despite the lack of detailed publicly disclosed terms.
- The United States has significantly increased tariffs on Chinese goods since January 2025, now imposing an average rate of about 55% on them, while Chinese tariffs on US goods average around 10%, creating a complex landscape in the realm of policy-and-legislation, general-news, and politics.
