The United States and China have agreed to extend their trade truce until 10 November, narrowly avoiding a hike in tariffs that was set to take effect within hours. In a joint statement, the two largest economies said the higher tariffs announced earlier this year would be suspended for another 90 days, giving negotiators more time to address trade imbalances, unfair practices, and national security concerns.
US President Donald Trump confirmed the move in a post on Truth Social, saying he had signed an executive order to prolong the tariff suspension, with all other elements of the agreement remaining unchanged. The White House said talks will also focus on boosting US export access to China and easing economic tensions.
The extension comes after last month’s discussions, which both sides described as “constructive.” Without the agreement, tariffs would have jumped on Tuesday, threatening further trade disruption amid concerns about inflation and economic stability.
Tensions escalated in April when Trump imposed sweeping new tariffs on imports from multiple countries, with China facing some of the steepest levies. Beijing retaliated with its own measures, leading to a tit-for-tat tariff war that nearly halted trade. A partial agreement in May reduced some of the penalties but still left Chinese goods entering the US with an additional 30% tariff and US goods facing 10% tariffs in China.
Current negotiations also cover issues such as access to China’s rare earth minerals, its purchase of Russian oil, and US restrictions on advanced technology exports, including semiconductors. Trump recently eased some chip export curbs, allowing companies like AMD and Nvidia to resume limited sales to Chinese firms in exchange for 15% of their revenues. The US is also pressing for TikTok to be spun off from its Chinese parent ByteDance, a move opposed by Beijing.
Despite the truce, trade between the two nations has slowed sharply this year. US government data shows imports of Chinese goods in June fell nearly 50% compared to the same month in 2024, with overall trade in the first half of 2025 down significantly for both imports and exports.
