Trump Signs Order to Extend China Tariff Truce by 90 Days

On Monday, US President Donald Trump issued an executive order to delay the reimposition of increased tariffs on Chinese goods, mere hours before the existing trade truce between Washington and Beijing was set to expire.

Extension of Tariff Suspension

• The White House announced that the suspension of steeper tariffs will remain in effect until 10 November 2025.
• President Trump stated on his social media platform, Truth Social:
  “I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days.”
• This truce was originally due to lapse on Tuesday.

Background of the US-China Tariff Dispute

Throughout 2025, the US and China imposed escalating tariffs on each other’s goods, escalating to triple-digit percentages that severely hampered trade. In May, both nations agreed to temporarily reduce these levies as part of a trade truce.

Chinese Response

• Concurrently with Trump’s announcement, Chinese state media Xinhua published a joint statement from US-China talks held in Stockholm, confirming that China would also extend its tariff suspension.
• China will continue suspending the tariff hike for 90 days from 12 August 2025, maintaining the 10-percent duty.
• The statement added that China would “take or maintain necessary measures to suspend or remove non-tariff countermeasures against the United States, as agreed in the Geneva joint declaration.”

White House Position

In the executive order posted on Monday, the White House reiterated concerns about the “large and persistent annual US goods trade deficits”, describing them as an “unusual and extraordinary threat” to national security and the US economy.

The order acknowledged ongoing negotiations with Beijing aimed at addressing “lack of trade reciprocity”, noting that China has taken “significant steps toward remedying” US grievances.

Expert Commentary and Outlook

• William Yang, an analyst with the International Crisis Group, cautioned that while Beijing is willing to continue negotiations, it is unlikely to make major concessions.
• Yang pointed out China’s leverage through rare earth exports as a potential pressure point on Washington.
• Sean Stein, president of the US-China Business Council, described the extension as “critical” to allow both governments time to negotiate an agreement, providing certainty for businesses.
• Wendy Cutler, senior vice president of the Asia Society Policy Institute and a former US trade official, said the deal would “pave the way for a Trump-Xi summit this fall”, but warned that such negotiations “will be far from a walk in the park.”

History of Tariff Escalations

• Since Trump took office, tariff rates on Chinese goods surged dramatically: from a modest 10 percent hike in February 2025, to repeated increases culminating at 145 percent in April.
• The current truce rate of 30 percent represents a negotiated pullback.
• Despite the May 2025 Geneva agreement aimed at easing tensions, the de-escalation process has been fraught with difficulties.
• Key officials met in London in June amid renewed disagreements, with US accusations that China violated the pact. Subsequent meetings took place in Stockholm last month.

President Trump’s Trade Hopes

In a social media post on Sunday, Trump expressed hope that China would “quickly quadruple its soybean orders”, indicating that such an increase would help rebalance trade between the two countries.

Summary Table: US-China Tariff Truce Extension (2025)