US, China prolong tariff truce for 90 days to avert steep duty hikes
The United States and China have agreed to extend their current suspension of higher tariffs for another 90 days, averting sharp duty increases that could have hit hundreds of billions of dollars’ worth of goods.
The move comes as American retailers prepare to stock up ahead of the peak year-end shopping season.
US President Donald Trump said on Truth Social that he had signed an executive order delaying the tariff hike until 12.01am EST (0501 GMT) on 10 November, with all other terms of the deal unchanged.
Hours later, Beijing’s Commerce Ministry confirmed a matching extension, also deferring new sanctions on US companies it had planned to blacklist in April.
The arrangement preserves existing tariff levels, 30% on Chinese goods entering the US and 10% on US exports to China, and prevents them from surging to 145% and 125% respectively. Without the extension, the truce was due to expire early Tuesday.
Washington described the pause as part of continuing efforts to address what it calls China’s “non-reciprocal” trade practices and related security issues.
Beijing said it was implementing “important consensus” reached between President Xi Jinping and Trump during a June 5 phone call, adding that the decision would help stabilise the global economy.
The extension follows months of talks that began with a 90-day truce agreed in May after negotiations in Geneva, followed by further meetings in Stockholm in July.
US Treasury Secretary Scott Bessent has repeatedly warned that the triple-digit duties imposed earlier this year amounted to a near-total trade freeze between the world’s two largest economies, calling them “untenable” in the long term.
Bessent told Nikkei Asia last week that the US aimed to conclude negotiations with countries still seeking trade deals, including Canada, Mexico and Switzerland, by the end of October.
He also underscored the importance of an independent Federal Reserve, but said the next Fed chair should be “very attuned to forward thinking” rather than relying solely on historical data. Trump has signalled his intention to replace current chair Jerome Powell.
Analysts say the move buys time for further bargaining and could set the stage for a Xi–Trump meeting later this year. Wendy Cutler, a former senior US trade negotiator, called it “positive news” and a sign that both sides are seeking common ground.
While Trump reportedly pressed for additional Chinese concessions, including a big jump in soybean purchases, these demands were not repeated in Monday’s announcement.
The US has also urged China to curb purchases of Russian oil as part of efforts to pressure Moscow over its war in Ukraine.
US trade data show imports from China have fallen sharply since June, narrowing the bilateral trade gap to $9.5 billion, the smallest since 2004. The extension ensures that Christmas-season imports, from electronics to clothing and toys, will face lower duties while talks continue.
Reuters
Nikkei Asia
