President Donald Trump has extended a pause on tariffs targeting Chinese goods for another 90 days, delaying a planned tariff increase until November 10 and easing tensions between the world’s two largest economies. The move aims to stabilize trade ties and provide additional time to negotiate unresolved issues.
Trump signed an executive order maintaining the existing terms of the trade truce, which first took effect earlier this year to reduce tit-for-tat tariff hikes and ease export restrictions on critical technologies such as rare earth magnets. “All other elements of the Agreement will remain the same,” Trump announced via his Truth Social platform. The White House confirmed that no other modifications to US trade policy were made beyond the extension of the deadline.
China reciprocated with a similar announcement, pledging to extend its own tariff suspensions for the same duration. Negotiators from both sides reached a preliminary agreement last month in Sweden, preventing US tariffs on Chinese goods from jumping to at least 54% after the original deadline.
The extension calms fears of a renewed tariff war that could severely disrupt global trade and markets, which have been shaken by the escalating US-China trade conflict earlier this year. It also buys time to address complex issues including US duties linked to fentanyl trafficking, concerns about Chinese purchases of sanctioned Russian and Iranian oil, and disputes over American business operations in China.
This development could also pave the way for a potential visit by Trump to China in late October to meet President Xi Jinping during an international summit in South Korea.
In his order, Trump emphasized ongoing talks with China to tackle trade reciprocity and national security concerns. “Through these discussions, the PRC continues to take significant steps toward remedying non-reciprocal trade arrangements,” he wrote.
Earlier this year, Trump had significantly raised tariffs on Chinese imports, provoking retaliatory measures from Beijing. US tariffs on Chinese goods ultimately soared to 145%, while China restricted exports of rare earth magnets vital to US manufacturers. The May truce temporarily lowered US tariffs to 30%, with China reducing levies to 10% and agreeing to resume rare earth exports.
Despite easing tensions, Trump’s engagement with China has drawn criticism from national security hawks wary of his approach to the geopolitical rival. Technology companies like Nvidia and AMD secured export licenses by agreeing to share revenue from certain AI chip sales with the US government, and Trump indicated openness to allowing scaled-back AI chip sales to China.
Bloomberg Economics notes that while the truce brings temporary relief, China’s trade position remains precarious. As other countries finalize bilateral trade deals with the US, China remains one of the few major economies without a clear path forward. Chief Asia Economist Chang Shu commented, “This reprieve does little to change China’s increasingly precarious trade position.”
Trump also recently urged China to significantly increase purchases of American soybeans to help reduce the US trade deficit.
The extension follows high-level discussions in Stockholm led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Though optimism about the talks was expressed, the agreement remains fragile and largely contingent on Trump’s approval.
A key focus of ongoing negotiations is maintaining stable trade relations while preserving strategic barriers in sectors such as battery technology, defense, and semiconductors. Notably, the US has recently approved shipments of certain semiconductors for AI use, and rare earth magnet exports from China to the US have started to recover.
US Trade Representative Jamieson Greer expressed cautious optimism, stating the US has secured commitments on the flow of rare earth magnets, “We’re about halfway there,” he said.
While rare earth magnet flows improved from 46 tons in May to 353 tons in June, shipments remain below pre-restriction levels. Sales of advanced AI chips remain a sticking point, with Chinese authorities summoning Nvidia over alleged security concerns.
Trump’s 30% tariff includes a 20% levy related to fentanyl and a 10% baseline charge, supplementing earlier tariffs imposed during his first term.
