The United States and China have agreed to extend their trade truce until 10 November, just hours before a sharp increase in tariffs was set to take effect.
In a joint statement, both countries confirmed that triple-digit tariffs announced earlier this year will remain suspended for another 90 days. The decision follows “constructive” talks last month, with US President Donald Trump signing an executive order on Monday to formalise the extension.
Under the agreement, Washington will delay imposing 145% tariffs on Chinese goods, while Beijing will continue to pause its planned 125% duties on US exports. For now, US tariffs on Chinese imports will stay at 30%, and China will maintain a 10% tariff on American goods.
According to the White House, the extension will allow more time to address trade imbalances and “unfair trade practices,” including a 2024 trade deficit of nearly $300 billion with China — the largest of any US trading partner. Negotiations will also focus on improving market access for US exporters, national security concerns, and global semiconductor supply stability.
The Chinese embassy in Washington called for “win-win cooperation” and urged the US to lift “unreasonable” trade restrictions. Beijing also pressed for measures that would benefit businesses on both sides and stabilise global chip production.
The tariff dispute escalated sharply in April when Trump announced sweeping new duties on imports from multiple countries, with China facing some of the steepest levies. Beijing retaliated with its own tariffs, leading to a near halt in bilateral trade before both sides reached a partial rollback agreement in May.
Key sticking points in ongoing talks include China’s rare earth exports, its purchase of Russian oil, and US restrictions on advanced technology sales. Trump has recently eased some chip export controls, allowing companies like AMD and Nvidia to resume limited sales to China in exchange for sharing 15% of revenues with the US government.
Even with the truce, trade volumes have dropped significantly. US imports from China in June were nearly 50% lower than a year earlier, while exports to China fell by about 20% in the first half of 2025.
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