Trump Extends US-China Trade Truce for 90 Days

US President Donald Trump has prolonged the trade ceasefire with China by 90 days, announcing the decision just hours before a scheduled tariff increase on Chinese imports.

The extension, formalized in an executive order on Monday, was expected by many observers. Washington has been hesitant to resume the intense trade dispute that unsettled markets in April, when tariffs on Chinese goods surged as high as 145 per cent. The White House has also expressed concerns over China’s restrictions on rare earth exports, which are vital to US manufacturing.

Trump stated that discussions with the People’s Republic of China remain ongoing to resolve imbalances in trade and address related national security concerns. He noted that Beijing has taken “significant steps” to address these issues, and the delay in higher tariffs will continue until November 10.

In May, US Treasury Secretary Scott Bessent negotiated an agreement with senior Chinese officials in Geneva to lower tariffs and pause the escalation of the trade conflict. A follow-up meeting took place in Sweden last month.

On Tuesday, China confirmed it would also suspend most of its retaliatory tariffs on US goods for the same 90-day period. The Chinese embassy in Washington said the decision was based on the “consensus” reached in Stockholm and emphasized the goal of maintaining dialogue to improve understanding and strengthen cooperation.

US officials have shown openness to easing certain export restrictions on semiconductors, one of China’s key demands, and have discussed the possibility of a Trump–Xi Jinping summit, although no date has been set.

The Financial Times recently reported that Trump has permitted Nvidia and AMD to export more advanced chips to China in exchange for a fee — a move that has raised concerns among some US national security officials.

The pause in the US-China economic dispute comes as Trump has reached agreements to reduce tariffs with other major trading partners, including the EU and Japan, while imposing higher duties on countries such as India and Brazil after talks with them failed.

Trump also announced on Monday that he would not impose tariffs on gold, reversing a previous plan that had unsettled markets.

Despite the truce, substantial tariffs remain in place: the US continues to apply a 30 per cent surcharge on Chinese imports, bringing average tariff rates above 50 per cent. China maintains additional 10 per cent tariffs on all US goods and further levies of 10–15 per cent on key products such as soybeans and energy commodities.

China continues to strictly regulate rare earth exports, allowing only limited shipments to the US under a June agreement on critical minerals. Economists caution that the ongoing tariffs between the world’s first- and third-largest trading partners could still fuel inflation and slow economic growth. CNBC was the first to report the extension.