China reciprocates US move to pause tariffs by another 90 days

The United States and China have agreed to extend their ongoing tariff truce by another 90 days, postponing the imposition of steep triple-digit duties on each other’s goods. The move comes as US retailers prepare to ramp up inventories for the year-end holiday season.

US President Donald Trump announced on his Truth Social account that he had signed an executive order delaying higher tariffs until 12:01 am EST (0501 GMT) on November 10, keeping all other terms of the truce unchanged.

China Responds with Parallel Tariff Delay

China’s Commerce Ministry issued its own announcement early Tuesday, confirming a 90-day extension of its tariff freeze. This includes a delay in adding US firms to its trade and investment restriction lists, a measure first outlined in April.

According to Trump’s executive order, “The United States continues to have discussions with the PRC to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns.” He added that China had been taking “significant steps toward remedying non-reciprocal trade arrangements.”

The previous truce was set to expire Tuesday at 12:01 am EDT (0401 GMT). The extension now secures lower tariff rates during the autumn surge in imports for the Christmas season, particularly for electronics, apparel, and toys.

Tariffs Held at Current Levels

Without the extension, US tariffs on Chinese imports would have spiked to 145%, while Chinese duties on US goods would have jumped to 125% — essentially creating a near-total trade embargo. Instead, current tariff levels remain locked at 30% for US duties on Chinese goods and 10% for Chinese duties on US imports.

“We’ll see what happens,” Trump told reporters, stressing his good relationship with Chinese President Xi Jinping.

Beijing called the move “a measure to further implement the important consensus reached by the two heads of state during their June 5 call,” emphasizing that the decision would help stabilize the global economy.

Trump told CNBC last week that the two countries were “very close” to a trade deal and suggested he could meet Xi before year-end if an agreement were finalized.

Trade Talks Progress

The US and China first agreed to a 90-day pause in May during talks in Geneva, Switzerland. Negotiators met again in Stockholm in late July, after which US trade officials recommended Trump extend the deadline.

US Treasury Secretary Scott Bessent has warned that the triple-digit duties imposed earlier this year were unsustainable and had effectively created a trade blockade between the world’s two largest economies.

Kelly Ann Shaw, a former senior White House trade official, noted that Trump likely pressed China for more concessions before signing the extension. Reports suggest Trump sought a significant increase in Chinese soybean purchases, though he did not mention it in Monday’s remarks.

“The whole reason for the 90-day pause was to lay the groundwork for broader negotiations,” Shaw explained, adding that the weekend saw discussions ranging from agricultural purchases to export controls.

Former trade official Ryan Majerus said the extension would “lower anxiety on both sides” and give negotiators more time to address long-standing disputes.

Economic Impact and Trade Deficit Shift

Recent US Commerce Department data showed that imports from China surged early this year to beat the original tariff deadlines but dropped sharply in June. The US trade deficit with China narrowed by about a third to $9.5 billion in June — the smallest gap since February 2004. Over the past five months, the deficit has shrunk by $22.2 billion, a 70% reduction compared to last year.

Washington is also urging Beijing to halt purchases of Russian oil in an effort to pressure Moscow over its war in Ukraine. Trump has warned that China could face secondary tariffs if it fails to comply.

Read more:
digitalmore.pk
pakistanrang.pk