US President Donald Trump has officially signed an executive order extending the deadline for imposing higher tariffs on Chinese goods by an additional 90 days, Reuters reported Monday, citing a White House official. The extension pushes back the looming August 12 deadline for increasing tariffs, which has kept global markets on edge.
Earlier on Monday, President Trump avoided directly confirming whether the tariff deadline would be extended, saying only, “We’ll see what happens,” while praising China’s cooperation during ongoing trade negotiations with the US.
The Escalating US-China Tariff War
Since early 2024, the United States and China have been involved in a trade dispute in which both nations have imposed increasing tariffs on one another’s goods. In April, the Trump administration raised tariffs on Chinese imports to a staggering 145 percent, prompting China to retaliate with duties of 125 percent on American goods.
The tit-for-tat tariff escalation pushed tensions to new heights, disrupting global supply chains and fueling uncertainty among investors and businesses worldwide.
Temporary Truce and Negotiation Efforts
Following months of rising tariffs, the parties agreed to reduce some of the excessive tariff levels in a temporary truce that was established in Geneva. The agreement aimed to provide a window for further negotiations and avoid the economic fallout of even higher duties.
Officials from the US and China also met in London in June, attempting to make progress on critical trade issues, including intellectual property, technology transfers, and agricultural imports.
What the 90-Day Extension Means
The tariff extension offers both Washington and Beijing extra time to continue talks without immediately escalating tariffs on August 12 at 00:01 (04:01 GMT).
But the extended deadline does not guarantee a permanent resolution of the ongoing trade dispute.
In the event that meaningful agreements are not made within this window, experts caution that the brief reprieve may just postpone additional tariff rises. As they weigh the risks of ongoing trade uncertainties, businesspeople are still being cautious.
Market and Global Economic Impact
The ongoing trade disagreements between China and the United States have affected commodity prices, consumer goods availability, and global mmanufacturing. or global markets anticipating a dramatic increase in trade barriers, the tariff deadline’s postponement has brought some respite.
However, analysts emphasize that long-term resolution depends on substantive trade negotiations, policy shifts, and mutual concessions between the two economic superpowers.
Although all parties have shown a desire to carry on the conversation, there are still important differences.
In order to get hints about the future of the tariff regime, observers are paying particular attention to forthcoming meetings and remarks made by trade authorities.
President Trump’s decision to extend the deadline reflects a pragmatic approach to buy time but leaves open the possibility of future tariff hikes if negotiations stall.
