US President Donald Trump extended a tariff truce with China by 90 days, delaying steep hikes to allow space for broader trade negotiations.
US President Donald Trump has signed an order to extend the tariff truce with China by another 90 days. The decision came just hours before steep hikes were due to take effect. Without the pause, US tariffs on Chinese goods would have jumped to 145%, while Chinese tariffs on US goods would have risen to 125%. Current rates remain at 30% on Chinese goods entering the United States and 10% on US goods entering China.
The extension keeps in place the terms agreed in May during talks in Geneva. That meeting led to the first 90-day pause to allow for more negotiations. Talks resumed in Stockholm in late July, but no new deal was announced at the time.
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Trump told reporters earlier in the day, “We’ll see what happens. They’ve been dealing quite nicely. The relationship is very good with President Xi and myself.” The White House offered no additional details beyond those remarks. The Treasury Department and US Trade Representative’s Office also declined to comment.
Kelly Ann Shaw, a former senior White House trade official, said she had expected Trump to push the talks to the last minute. She called the move a classic “Trump-style negotiation” and said the pause gives room for discussions on soybean sales, export controls, and excess industrial capacity.
Ryan Majerus, another former US trade official, said the extension would “undoubtedly lower anxiety on both sides” as they work toward a possible framework deal in the autumn.
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US Treasury Secretary Scott Bessent said Washington now has “the makings of a deal” and expressed optimism about progress. On Sunday, Trump urged Beijing to quadruple its purchases of US soybeans. Analysts, however, doubt that such a massive increase is realistic. Interestingly, Trump did not repeat the request on Monday.
Washington has also pressed China to halt Russian oil imports. Trump warned of possible secondary tariffs if those purchases continue. This adds another geopolitical layer to the already complex trade talks.
Washington is attempting to match Beijing’s trade policies with its geopolitical objectives by tying tariff relief to demands on Russian oil imports. Due to this strategy, global security concerns may have just as big of an impact on the upcoming round of negotiations as market factors.
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The latest extension delays a major escalation in tariffs and calms markets for now. However, the autumn deadline could bring sharper choices. Both parties may experience fresh economic hardship if trade development freezes or geopolitical tensions increase. Trump’s pause buys time — but it also raises the stakes for the months ahead.
