US and China Extend Tariff Truce for 90 Days
The United States and China have extended their trade truce for another 90 days, delaying a significant tariff escalation. The previous deadline was set to expire Tuesday, which could have triggered duties of up to 145% on Chinese goods and 125% on US goods. The extension, announced by US President Donald Trump, maintains the current 30% US tariff and 10% Chinese tariff. The move provides more time for negotiations on longstanding trade disputes and offers stability for businesses and global markets.
Unpacked:
Talks focus on tariff rollbacks, enforcement mechanisms, tech and investment restrictions, and sector carve-outs (e.g., autos, metals), along with Chinese market access and U.S. concerns over subsidies and industrial policy. Both sides signaled the truce is to allow progress toward a broader deal and a potential Trump–Xi summit later this year.
Tariffs near 145% on Chinese goods and 125% on U.S. exports would have sharply raised import costs, disrupted supply chains, and pressured retail prices, particularly during the holiday stocking period. Analysts characterized such levels as approaching a de facto embargo, risking broader market volatility and planning uncertainty for firms on both sides.
The extension maintains U.S. tariffs at 30% and China’s at 10%, far below early May 2025 peaks when average U.S. tariffs on Chinese goods briefly reached about 126.5% before being reduced. Overall, average U.S. tariffs remain far higher than at the start of 2025, and China’s are also elevated relative to January levels.
The truce now runs about 90 days, to around November 10, 2025. Developments that could alter the path include progress in negotiations, sector-specific carve-outs, or preparations for a Trump–Xi summit. Conversely, talks stalling or geopolitical shocks could revive escalation and planned duty increases.