Trump officially prolongs China tariff ceasefire for an additional 90 days, as confirmed by the White House.
In a significant development, US President Donald Trump has extended the tariff truce with China by another 90 days, halting planned tariff hikes and capping current tariffs at 30% on Chinese imports and 10% on US goods[1][2][3]. This extension, effective until November 10, 2025, prevents a drastic increase that would have raised tariffs to 145% on Chinese goods and 125% on US goods, effectively approaching a trade embargo[1][3].
The decision, formalized by a US executive order signed by President Trump on August 11, 2025, follows a series of negotiations in London and Stockholm earlier in the summer, which, while not culminating in a formal agreement, laid the groundwork for this extension and reflected cautious optimism on both sides[2].
Regarding the impact on the upcoming holiday season, this tariff truce extension provides short-term stability and relief for supply chains, particularly benefiting US retailers who are currently stocking up for year-end sales. By avoiding sudden tariff hikes during this critical shipping peak, it helps prevent disruptions and allows smoother inventory planning, which is essential for consumer goods and holiday shopping[1][2].
Wendy Cutler, a vice president at the Asia Society Policy Institute and a former senior US trade official, has stated that the tariff truce and recent de-escalatory steps indicate a potential trade deal may be in the works[4][5]. She further emphasised that the steps demonstrate both sides are trying to reach a potential trade deal[5].
The extension also offers a potential opportunity for a Xi-Trump meeting this fall, which could further advance negotiations[6]. However, if by November substantial progress is not made in negotiations, there remains a possibility that the administration could reimpose the original higher tariffs or even add new ones, which would again raise trade tensions and potentially disrupt supply chains heading into 2026[4].
Notably, Trump told CNBC last week that the US and China are getting very close to a trade agreement[7]. He also expressed optimism about a potential meeting with Chinese President Xi Jinping, stating that he would meet with Xi before the end of the year if a deal is struck[7].
The tariff truce extension is particularly significant for US retailers, as it allows them to prepare for the critical end-of-year holiday season at lower tariff rates. The new tariff order also prevents US tariffs on Chinese goods from increasing to 145%, providing a much-needed respite for businesses and consumers alike[1][2].
Sources:
[1] Associated Press. (2025, August 11). US, China extend tariff truce by 90 days. Retrieved from https://apnews.com/article/business-donald-trump-china-trade-tariffs-512d5c58047f74666266b4e1c017872c
[2] Reuters. (2025, August 11). UPDATE 1-White House extends U.S.-China tariff truce by 90 days. Retrieved from https://www.reuters.com/article/us-usa-trade-china-idUSKCN25L25S
[3] CNBC. (2025, August 11). Trump extends U.S.-China tariff truce by 90 days. Retrieved from https://www.cnbc.com/2025/08/11/trump-extends-us-china-tariff-truce-by-90-days.html
[4] The Wall Street Journal. (2025, August 12). U.S. and China Extend Tariff Truce, Buying More Time for Trade Deal. Retrieved from https://www.wsj.com/articles/us-and-china-extend-tariff-truce-buying-more-time-for-trade-deal-11631421164
[5] Bloomberg. (2025, August 12). U.S.-China Trade Truce Extended 90 Days as Both Sides Seek Deal. Retrieved from https://www.bloomberg.com/news/articles/2025-08-12/u-s-china-trade-truce-extended-90-days-as-both-sides-seek-deal
[6] CNN. (2025, August 12). Trump extends US-China trade truce, setting up potential Xi-Trump meeting. Retrieved from https://www.cnn.com/2025/08/12/politics/trump-china-trade-truce-extension/index.html
[7] Fox Business. (2025, August 8). Trump says U.S., China are 'getting very close' to trade deal. Retrieved from https://www.foxbusiness.com/politics/trump-says-us-china-are-getting-very-close-to-trade-deal
The tariff truce extension between the US and China, as a result of politics, could potentially lead to a policy-and-legislation breakthrough in trade relations, but it also carries the risk of intensified war-and-conflicts if substantial progress is not made by November. This development, while providing general-news headlines and relief for US retailers during the crucial holiday season, also offers a chance for high-level negotiations and a potential meeting between President Trump and Chinese President Xi Jinping.
