Trump Extends China Tariff Deadline 90 Days to Aid Talks

US President Donald Trump has signed an executive order to extend the tariff deadline on China by another 90 days, delaying the expected increase in tariffs that was set to take effect on August 12, 2025. This extension maintains a tariff truce agreed upon earlier this year, where tariffs on Chinese goods were temporarily lowered to 30%, while Chinese tariffs on US products were set at 10%.

The decision to prolong this trade truce came just hours before the original deadline would have caused US tariffs on Chinese goods to jump to 145%, with retaliatory Chinese tariffs on US goods reaching 125%, levels that could have led to a near trade embargo between the two largest economies.

Trump stated publicly that the relationship with China and its President Xi Jinping has been positive, describing the dealings as “quite nicely” and emphasizing a good rapport between the two leaders. Meanwhile, Chinese officials expressed hope for collaborative efforts based on “equality, respect, and mutual benefit” to maintain the truce and seek positive outcomes.

This extension follows recent negotiations that took place in Stockholm last month, which while constructive, have not yet resolved all trade disputes between Washington and Beijing. The 90-day pause is widely seen as a way to provide additional time for both sides to work toward a more comprehensive trade agreement and possibly arrange a summit between Trump and President Xi later this year.

These tariff tensions have affected global trade and markets, with businesses and consumers facing uncertainties related to tariff-induced price changes. The pause helps reduce immediate economic disruption, giving companies more certainty and time to adjust supply chains and costs.

Experts note that while the tariff truce eases immediate tensions, underlying trade issues—such as concerns over manufacturing practices, export controls on technology, and China's economic policies—remain complex and unresolved. The extension offers a window to address these challenges without escalating tariffs further, but the situation remains delicate and dependent on continued diplomatic negotiations.

In summary, the 90-day extension of China tariffs announced by President Trump reflects cautious optimism and a strategic pause in a heated trade conflict. It allows both the US and China more time to negotiate while preventing a sharp tariff escalation that could harm global economic stability. The coming months will be crucial to see if this temporary truce leads to more lasting trade solutions or if tensions will rise again after the extension expires.

With inputs from agencies

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