U.S. President Donald Trump has signed an executive order extending a suspension of higher tariffs on Chinese imports for 90 days, temporarily averting the rekindling of a fierce trade dispute between the world’s two largest economies. The decision, announced via Trump’s Truth Social platform on Monday, delays the expiry of a tariff truce that had been set to lapse Tuesday. Under the new timeline, steeper U.S. duties on Chinese goods will remain frozen at 30% until November 10, while China has committed to maintaining its reduced 10% tariffs as negotiations continue.
The move follows months of escalating trade tensions, with both nations imposing punitive tariffs on hundreds of billions of dollars’ worth of goods earlier this year, driving rates as high as 145% on certain products. A temporary détente in May saw Washington and Beijing agree to lower tariffs, but the truce has faced repeated strains. Shortly after Trump’s announcement, China’s state-run Xinhua news agency confirmed that Beijing would extend its suspension of tariff hikes for 90 days starting August 12, aligning with commitments made during U.S.-China talks in Stockholm.
In a formal statement accompanying the order, the White House reiterated its stance that persistent U.S. trade deficits with China represent a “threat to national security,” while acknowledging “significant steps” taken by Beijing to address American concerns. Analysts, however, remain skeptical of a swift resolution. William Yang of the International Crisis Group noted that while China appears willing to continue negotiations, it is unlikely to concede ground easily, particularly given its strategic control over rare earth mineral exports—a potential leverage point.
Business leaders emphasized the need for clarity. Sean Stein of the U.S.-China Business Council called the extension “critical” to provide companies stability amid fluctuating trade policies. Wendy Cutler, a former U.S. trade negotiator, suggested a finalized deal could set the stage for a Trump-Xi Jinping summit this fall, though she cautioned that reaching an agreement would be “far from a walk in the park.”
The tariff landscape remains volatile. Since Trump resumed office in January, his administration has imposed a 10% “reciprocal” tax on imports from nearly all trading partners, citing unfair practices. Last week, these tariffs rose to 15% for major economies like the EU, Japan, and South Korea, and spiked to 41% for Syria. Exemptions apply to sectors such as steel, aluminum, and pharmaceuticals, while confusion over gold tariffs prompted Trump to clarify Monday that the precious metal would not face additional duties.
Separately, Trump has targeted individual nations, criticizing Brazil over the legal proceedings against former President Jair Bolsonaro and India for purchasing Russian oil. Canada and Mexico remain subject to distinct tariff frameworks under renegotiated North American trade terms.
Amid the diplomatic maneuvering, Trump reiterated hopes that China would “quadruple” soybean purchases to rebalance trade—a nod to agricultural sectors impacted by the dispute. Meanwhile, China reported stronger-than-expected export growth of 5.8% in June, underscoring its efforts to stabilize trade volumes despite ongoing tensions.
With November’s deadline looming, the extension offers a reprieve but leaves unresolved the deeper structural disagreements fueling the prolonged economic standoff.
