Donald Trump’s Tariff Extension Saves U.S.-China Trade — But For How Long?

U.S. President Donald Trump has agreed to extend a tariff truce with China for another 90 days, a White House official confirmed on Monday. The decision came just hours before tariffs on Chinese goods were set to surge to triple-digit rates.

The truce was expected to expire at 00:01 ET (04:01 GMT) on Tuesday. Without the extension, U.S. tariffs on Chinese goods would have jumped to 145%, while Chinese tariffs on American goods would have risen to 125%, levels that could have almost stopped trade between the US and China.

Will Trade Talks Between US and China Succeed?

Currently, U.S. imports from China face a 30% tariff, made up of a 10% base rate and 20% in additional fentanyl-related tariffs imposed earlier this year. China had mirrored the reduction, lowering its own tariffs on U.S. goods to 10%.

Trump’s announcement followed a cautious response to reporters when asked if he would extend the deadline. “We’ll see what happens,” he said at a press conference, adding that relations with Chinese President Xi Jinping were “very good.” His comments came a day after urging Beijing to quadruple its purchases of U.S. soybeans.

The current truce began in May, after talks in Geneva resulted in an agreement to pause the trade dispute for 90 days to allow further negotiations. A second meeting in Stockholm in late July ended without an announcement on extending the deadline.

U.S Officials Hopeful of Fruitful Trade Talks Between Beijing and Washington

Kelly Ann Shaw, a former White House trade official, said she expected Trump to announce the 90-day extension later on Monday. She added that the president could use the occasion to highlight progress in other areas of the U.S.-China economic relationship.

Shaw added that the pause was intentional to ease broader trade talks, and recent discussions had touched on issues ranging from soybean trade to export controls and industrial overcapacity.

The White House refused to comment more on the topic. The Treasury Department and the U.S. Trade Representative’s Office did not respond to media inquiries.

U.S. Treasury Secretary Scott Bessent said he believed the two nations had the foundation for a deal and expressed optimism about future talks.

Also Read: What A Failed US-China Deal Could Mean For Asian Economies?