U.S. and China extend truce deadline by 90 days

The United States and China have extended the trade armistice to November 10, just hours before the pre-imposed tariffs.

In a joint statement, the world’s two largest economies said triple-digit tariffs on each other’s goods announced earlier this year will be suspended for 90 days.

Last month’s negotiations called the discussion “constructive” by both sides. China’s top negotiator said at the time that the two countries would work to preserve the truce, while U.S. officials said they were waiting for the final signing of U.S. President Donald Trump.

Trump signed on Monday Executive Order Extend the tariff truce.

This means Washington will further postpone the imposition of 145% tariffs on Chinese goods, while Beijing will continue to pause the 125% tariff on U.S. goods.

Under the agreement, the United States will have a tariff of 30% on Chinese imports, while China will maintain a tariff of 10% on U.S. goods.

The White House said the armistice extension would hold more negotiations to “remediate trade imbalances” and “unfair trade practices.”

It cited a trade deficit with China close to $30 billion (£22.3 billion) in 2024, the largest of any of its trading partners.

The statement said the negotiations will also aim to increase U.S. exporters’ access to China and address national security and economic issues.

A spokesman for the Chinese Embassy in Washington said: “Win win-win cooperation between China and the United States is the right path; repression and containment will be nowhere to go.”

In the statement, China also called on the United States to lift its “unreasonable” trade restrictions and work together to benefit companies on both sides and maintain the stability of global semiconductor production.

The return of higher tariffs could risk further trade turmoil and uncertainty Worry about the impact of tariffs on prices and the economy.

Trade tensions between the United States and China have a fever in April, with China facing some top taxes after Trump announced new tariffs on goods around the world.

Beijing retaliated against its own tariffs, sparking a tit-tat battle that soared tariffs to triple digits and almost shutting down trade between the two countries.

Both sides agreed to put some of these measures on hold in May.

Compared to the beginning of the year, the agreement puts Chinese goods in the United States facing 30% tariffs, and American goods in China face new 10% tariffs.

The two sides are still discussing issues about entering China’s rare earths, purchasing Russian oil, and selling advanced U.S. technology, including travel to China.

Trump has recently relaxed some of these export restrictions, allowing companies like AMD and NVIDIA to resume certain chips selling to Chinese companies in exchange for sharing They are 15% of the U.S. government revenue.

The U.S. is also pushing for derivative works sent by Tiktok from its Chinese owners, a move that has been opposed by Beijing.

Earlier Monday, Trump did not promise an expanded truce in his speech to reporters, but said the deal was “good”. A day ago, he called on Beijing to increase its purchases of our soybeans.

Even if the truce is in war, trade flows between countries have been hit this year. US government figures Compared with June 2024, imports of Chinese goods will drop almost half.

In the first six months of this year, the United States imported $16.5 billion (£130 billion) worth of goods from China, down about 15% from the same period last year. During the same period, U.S. exports to China fell by about 20% year-on-year.