U.S. and China extend tariff truce for 90 days

The U.S. and China have extended their tariff truce for 90 days, avoiding triple-digit duties on each other’s goods and easing market concerns as Washington and Beijing continue talks on a broader trade agreement.

U.S. President Donald Trump announced on Monday that he had signed an executive order delaying higher tariffs on Chinese imports until 12:01 a.m. EST on 10 November, with all other terms of the current truce to remain in place. China’s Commerce Ministry issued a parallel order early Tuesday, also pausing its planned duties on U.S. goods for the same period.

According to Trump’s order, the U.S. continues discussions with Beijing to address what it calls the lack of trade reciprocity and related national security concerns. The extension was agreed just hours before the existing truce was due to expire, preserving current tariffs of 30% on Chinese imports and 10% on U.S. imports. Without the deal, U.S. duties would have risen to 145% and Chinese tariffs to 125%, levels analysts said would have amounted to a de facto trade embargo.

The timing is critical for U.S. retailers stocking up ahead of the holiday season, helping keep costs down for electronics, clothing and toys. Markets reacted positively, with Asian stocks rising and regional currencies steady.

The current tariff pause stems from a May agreement in Geneva, when negotiators set a 90-day period for further talks. A follow-up meeting in Stockholm in late July resulted in a U.S. recommendation to extend the deadline.

Treasury Secretary Scott Bessent has repeatedly said triple-digit duties were unsustainable. Kelly Ann Shaw, a former White House trade official, told CNBC the extension fit Trump’s style of “negotiating right down to the wire.”

Beijing and Washington remain at odds over issues such as high-tech goods, agricultural purchases and fentanyl flows. Xu Tianchen of the Economist Intelligence Unit said both sides appear confident they can withstand the trade pressure, but neither benefits from a prolonged standoff.

China’s latest trade data showed exports to the U.S. fell 21.7% year-on-year in July, while shipments to Southeast Asia rose 16.6% as exporters sought alternative markets. The U.S. trade deficit with China shrank to its lowest in more than two decades in June.

Ryan Majerus, a former U.S. trade official, said the extension buys both countries “time to work through long-standing concerns” ahead of a potential framework deal this autumn. Washington has also been pressing Beijing to reduce imports of Russian oil as part of its wider foreign policy objectives.

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