The United States and China have agreed to extend their trade truce for another 90 days, averting a potential escalation in tensions between the world’s two largest economies.
US President Donald Trump announced on Monday via Truth Social that he had signed an executive order to prolong the agreement, with “all other elements” remaining unchanged. China’s Ministry of Commerce confirmed a simultaneous extension of its tariff pause.
The announcement came just hours before the previous deadline was set to expire.
Without the extension, the US could have raised tariffs on Chinese imports from 30%, while Beijing was prepared to respond with higher retaliatory levies on American goods.
The pause gives both sides more time to resolve outstanding trade disputes and could pave the way for a meeting between Trump and Chinese President Xi Jinping later this year. US businesses operating in China have welcomed the decision.
Following Trump’s initial tariff hikes in April, China imposed restrictions on exports of dual-use goods to some American firms and banned others from operating in the country.
The Ministry of Commerce said it would lift some of these restrictions and grant a 90-day reprieve to others.
Trade tensions had reached a breaking point earlier this year when both countries imposed tariffs as high as 145% and 125% on each other’s products, sparking fears of a total trade freeze and triggering a sharp sell-off in global markets.
In May, during talks in Geneva, Washington and Beijing agreed to roll back tariffs to 30% for US duties and 10% for Chinese duties, while continuing negotiations — which remain ongoing under the newly extended truce.
