US & China Extend Trade Truce To Avoid Tariffs Hike

The United States and China have agreed to extend their trade truce by another 90 days, just before they were scheduled to raise tariffs on each other’s imports. On Monday, U.S. President Donald Trump signed an executive order to maintain the pause until November 10, while China also confirmed a similar extension.

Under the agreement, the U.S. will continue to impose a 30% tariff on Chinese goods, while China will maintain its 10% duty on U.S. imports. Earlier this year, both countries had threatened to escalate tariffs significantly — up to 145% by the U.S. and 125% by China — but these were reduced after trade negotiations in Geneva in May.

The extension provides time for further talks aimed at addressing trade imbalances and unfair practices. The White House cited a $300 billion trade deficit with China in 2024 and emphasized the need for fairer market access, particularly for U.S. exporters.

China responded by urging the U.S. to drop “unreasonable” trade barriers and focus on cooperation. Tariffs remain central to Trump’s policy, aimed at promoting domestic manufacturing, raising revenue, and reducing reliance on foreign goods.