The US and China have extended the tariff truce for 90 days

The United States and China on August 11 extended their tariff truce by another 90 days, deferring triple-digit duties on each other’s imports. Reuters reports.

U.S. President Donald Trump announced on his Truth Social platform that he had signed an order suspending the introduction of higher tariffs until November 10, while all other elements of the truce remain in effect.

On the morning of August 12, the Ministry of Commerce of China announced a parallel pause in the application of additional duties.

The extension of the truce prevents U.S. tariffs on Chinese goods from rising to 145%, while Beijing’s tariffs on U.S. products were set to reach 125%. Such rates would have effectively resulted in a trade embargo between the countries. The new order by Trump for now sets a 30% tariff on Chinese imports, with Beijing’s tariffs on U.S. goods standing at 10%.

«The United States continues to negotiate with the People’s Republic of China with the aim of resolving the lack of reciprocity in our economic relations and related national and economic security concerns», the order by Trump states.

The tariff truce between the parties was set to expire on August 12.

The delay was an expected outcome of the latest, third round of negotiations between representatives of the United States and China, which took place in Stockholm at the end of July. Both parties agreed to suspend most tariffs in May, after the first trade meeting in Geneva.

It should be recalled that on July 31, Donald Trump announced new tariffs on imports for nearly seven dozen trading partner countries and the European Union. Most of the new duties took effect on August 7.