U.S. and China Extend Trade Truce for 90 Days, Delaying Escalating Tariffs

WASHINGTON, D.C. – August 12, 2025 – The United States and China have agreed to extend their trade truce for an additional 90 days, just hours before new tariffs were set to take effect. The move, announced by U.S. President Donald Trump, buys both nations more time to negotiate a comprehensive trade agreement. The extension means that the current tariff rates, which were set in May, will remain in place until November 10.

Under the initial agreement, which averted a full-scale trade war, the U.S. reduced its tariffs on Chinese imports to 30%, while China lowered its levies on American goods to 10%. Without this latest extension, tariffs could have skyrocketed, potentially disrupting global supply chains and causing significant economic instability.

The extension provides a crucial window for negotiators to address complex issues, including market access, intellectual property rights, and the U.S.’s substantial trade deficit with China. The agreement to extend the truce has been welcomed by businesses in both countries, which have been seeking greater certainty for medium and long-term planning. Both sides have expressed a desire for a positive outcome, with the possibility of a summit between President Trump and Chinese President Xi Jinping later this year if an agreement is reached. The pause aims to de-escalate tensions and provide a pathway toward a more balanced and stable trade relationship between the world’s two largest economies.

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