The United States and China have once again extended a “tariff truce,” with the White House announcing a 90-day pause on higher tariffs on Chinese goods. This decision, made by executive order from President Trump, came just hours before the previous agreement was set to expire, preventing a potential escalation in the trade conflict between the world’s two largest economies. The new extension is in effect until November 10.
The move keeps existing tariff rates in place—30% on most Chinese goods entering the U.S. and 10% on American goods entering China. Without the extension, these rates could have reverted to the triple-digit levels seen earlier this year, which threatened to bring trade to a near halt. In a statement, President Trump noted that discussions with China have been “productive,” while China’s Ministry of Commerce issued a parallel announcement confirming its own suspension of additional tariffs. This second extension of the truce, which was first agreed upon in May, buys both nations more time to negotiate a comprehensive trade agreement.
Analysts and industry leaders have largely welcomed the extension, which provides stability for businesses and financial markets. The announcement prompted a rally in global stock markets, with both Japanese and Australian equities hitting record highs. The pause may also pave the way for a potential summit between President Trump and Chinese President Xi Jinping later this year, giving leaders the opportunity to address lingering disputes over issues such as intellectual property rights, market access, and the trade deficit.