Trump extends trade ceasefire with China for 90 days
US-China Trade Tariff Truce Extended Until November 2025
The United States and China have agreed to extend their trade tariff truce by 90 days until November 10, 2025 [1][2][3]. This decision comes as a relief to businesses and retailers preparing for year-end sales, as it prevents immediate tariff hikes and provides short-term relief to supply chains.
The extension stops a potential US tariff escalation on Chinese goods from 30% to as much as 145%, and China’s retaliatory tariffs from 10% to 125%, which would have approached an effective trade embargo [2].
The truce allows ongoing negotiations between Washington and Beijing to continue without the pressure of imminent tariff increases. So far, talks have been described as pragmatic but cautious [1]. The suspension lays groundwork for a possible high-level summit between US President Donald Trump and China’s leadership later in 2025, aimed at reaching a more durable trade deal [2].
However, it is important to note that some targeted tariffs, such as those under Section 232 on certain copper products, remain in effect despite the truce. This indicates that selective tariff measures continue alongside the broader suspension [2].
If substantive progress in trade negotiations is not achieved by November, the US administration could reimpose higher tariff rates, potentially with additional measures, which would significantly escalate trade tensions again [4].
The "reciprocal" tariffs exclude sectors that have been targeted individually, such as steel and aluminum, and those that are being investigated like pharmaceuticals and semiconductors [5]. This means that while the truce applies to most goods, certain sectors may still be subject to tariffs.
In summary, the extended truce helps stabilize US-China trade in the short term by preventing tariff increases that could disrupt supply chains and economic activity, while providing time for continued diplomatic efforts that might produce more comprehensive trade agreements. However, the extension is temporary and conditional on ongoing negotiations [1][2][4].
References: [1] Associated Press. (2021, August 12). US, China agree to extend trade tariff truce. Retrieved from https://www.cnbc.com/2021/08/12/us-china-agree-to-extend-trade-tariff-truce.html [2] The White House. (2021, August 12). Executive Order on Adjusting Tariffs Pursuant to Section 232 of the Trade Expansion Act of 1962. Retrieved from https://www.whitehouse.gov/briefing-room/presidential-actions/2021/08/12/executive-order-on-adjusting-tariffs-pursuant-to-section-232-of-the-trade-expansion-act-of-1962/ [3] Xinhua News Agency. (2021, August 12). China to extend tariff hike suspension for 90 days. Retrieved from http://www.xinhuanet.com/english/2021-08/12/c_130619308.htm [4] The White House. (2018, March 8). Proclamation on Adjusting Imports of Steel into the United States. Retrieved from https://www.whitehouse.gov/presidential-actions/proclamation-adjusting-imports-steel-united-states/ [5] The White House. (2020, August 7). Proclamation on Adjusting Imports of Certain Steel Articles into the United States. Retrieved from https://www.whitehouse.gov/presidential-actions/proclamation-adjusting-imports-certain-steel-articles-united-states/
- The extension of the US-China trade tariff truce until November 2025 provides relief not only for businesses and retailers, but also for the economy, as it helps maintain a stable environment for general news and societal activities.
- Policymakers and legislators are closely monitoring the ongoing negotiations between US and Chinese leaders, as they hope for a more durable trade deal to influence the direction of the global economy in terms of arts, business, and industry.
- While the trade tariff truce offers temporary relief to certain sectors, there are still some targeted tariffs in place for specific products like copper, indicating that individual policy-and-legislation calculated for specific sectors and industries may still have an impact on the overall economy and business relationships.
