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The United States and China on Monday extended their tariff truce by 90 days, delaying a steep increase in duties and giving both sides more time to negotiate a broader trade agreement.
The extension postpones tariff hikes that had been set to kick in at 12:01 a.m. EDT Tuesday, which could have triggered a virtual trade embargo between the world’s two largest economies.
President Donald Trump announced on Truth Social that he signed an executive order pausing the tariff increases until November 10 at 12:01 a.m. EST.
The move averts a potential spike in tariffs—up to 145% on Chinese goods and 125% on U.S. products—that would have hit retailers just as they prepare for the holiday shopping season.
Trump's order maintains the current 30% tariff rate on Chinese imports, with Chinese tariffs on U.S. goods holding at 10%.
China’s Commerce Ministry mirrored the move early Tuesday, delaying new penalties and the inclusion of U.S. firms on its trade restriction lists.
“The United States continues to have discussions with the PRC to address the lack of trade reciprocity,” the executive order stated, referencing national and economic security concerns.
Trump emphasized his relationship with Chinese President Xi Jinping and said both sides were making progress.
“We'll see what happens,” he told reporters Monday.
Beijing said the delay stems from the “important consensus” reached during a June 5 call between the two leaders and aims to stabilize the global economy.
Wendy Cutler, vice president at the Asia Society Policy Institute, called the move “positive news.” She noted it signaled a willingness on both sides to create conditions for a Trump-Xi meeting in the fall.
Negotiators from both countries met in May in Geneva and again in July in Stockholm. Following those talks, U.S. officials recommended extending the truce.
Treasury Secretary Scott Bessent has called the looming tariffs “untenable,” arguing they had become a de facto trade embargo.
“It wouldn’t be a Trump-style negotiation if it didn’t go right down to the wire,” said Kelly Ann Shaw, a former White House trade adviser.
She said Trump likely demanded more concessions from Beijing before agreeing to the extension. On Sunday, Trump pushed for a fourfold increase in Chinese soybean purchases, but dropped the request Monday.
Imports from China surged early this year in anticipation of tariff hikes but fell sharply in June. The U.S. trade deficit with China dropped to $9.5 billion—its lowest since February 2004.
In five straight months of decline, the trade gap narrowed by $22.2 billion, a 70% year-over-year reduction.
Ryan Majerus, a former trade official, said the truce offers “breathing room” and lowers tensions as talks continue.
Washington has also pressed Beijing to curb purchases of Russian oil amid the war in Ukraine, with Trump threatening secondary sanctions if China does not comply.
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