Trump prolongs trade agreement pause with China for an additional 90 days
The U.S.-China tariff truce, which was set to expire on Tuesday, has been extended for another 90 days. The extension was announced following President Donald Trump's recent executive order signed on August 11, 2025.
The truce, which was first agreed upon in May after talks in Geneva, Switzerland, had set a 90-day period for further negotiations. During this time, tariffs on Chinese goods were capped at 30%, while tariffs on U.S. goods were kept at 10%. This extension maintains these tariff levels, providing short-term economic relief and stability during a critical trade season.
The extension follows multiple rounds of negotiations over the summer, including talks in London and Stockholm, which, although not producing a final agreement, set a pragmatic and cautious foundation for continuing discussions. Treasury Secretary Scott Bessent emphasized that the arrangement is “working pretty well” and that the administration is “very happy” with the current tariff situation.
If no further deal is reached by November 10 and the truce is not extended, tariff rates could revert to much higher levels. U.S. tariffs on Chinese goods could increase from 30% back to 34%, and potentially even to 145% if the previous escalation were reimposed. Chinese retaliatory tariffs might rise to 125%, effectively nearing a trade embargo.
The extension aims to give negotiators more time to reach a longer-term agreement. U.S. Treasury Secretary Steven Mnuchin has expressed optimism about the path forward in negotiations with China. Ryan Majerus, a former U.S. trade official, believes the extension will lower anxiety on both sides and give them more time to work towards a potential deal.
However, the extension may not be without controversy. Washington is also pressing Beijing to stop buying Russian oil, with Trump threatening to impose secondary tariffs on China. The White House, Treasury Department, and U.S. Trade Representative's Office did not respond to requests for comment.
In the meantime, imports from China are currently subject to 30% tariffs, including a 10% base rate and 20% in fentanyl-related tariffs. The article does not mention any new tariffs on gold or the introduction of new tariffs on single-use plastic bags in Dubai.
References:
- CNBC
- Bloomberg
- Reuters
- The Wall Street Journal
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