The United States and China have extended their tariff truce for an additional 90 days, delaying the imposition of triple-digit tariffs on each other’s goods as the critical holiday shopping season approaches. President Donald Trump announced on his Truth Social platform that he signed an executive order to maintain the current tariff suspension until November 10, 2025. China’s Commerce Ministry followed suit, announcing a parallel extension of its tariff pause and a postponement of new trade and investment restrictions on US firms.
This extension prevents a sharp escalation of tariffs that would have seen US duties on Chinese imports skyrocket to 145%, while Chinese tariffs on US goods could have reached 125%. Instead, the US tariffs remain capped at 30%, and China’s tariffs at 10%, maintaining a fragile but vital balance to support trade flows amid ongoing negotiations. The agreement provides important breathing room for US retailers ramping up inventories for electronics, apparel, and toys ahead of the year-end shopping rush.
The executive order highlights continued US efforts to address issues such as trade reciprocity and national security concerns in economic relations with China. President Trump emphasized that the two nations are making significant progress toward remedying inequitable trade practices. Chinese officials described the extension as a stability measure that aligns with the consensus reached between the presidents during their June 5 call, supporting global economic stability.
Looking forward, the extended truce sets the stage for further trade talks and a potential summit between Presidents Trump and Xi Jinping before the end of the year. Analysts see these developments as positive signs that both powers remain committed to finding a longer-term solution to trade disputes, promoting a more balanced and secure economic partnership for the future.