U.S., China Extend Tariff Truce By 90 Days as Trump Doesn’t Get His Way

The United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other’s goods as U.S. retailers prepare to ramp up inventories ahead of the critical end-of-year holiday season, Trevor Hunnicutt, Andrea Shalal, and Joe Cash reported for Reuters.

For now, the agreement keeps in place a 30% tariff on Chinese imports, with Chinese duties on U.S. imports at 10%.

U.S. President Donald Trump announced on his Truth Social platform on Monday that he had signed an executive order suspending the imposition of higher tariffs until 12:01 a.m. EST (0501 GMT) on November 10, with all other elements of the truce to remain in place.

China’s Commerce Ministry issued a parallel pause on extra tariffs early Tuesday, also postponing for 90 days the addition of U.S. firms it had targeted in April to trade and investment restriction lists.

“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,” Trump’s executive order stated, using the acronym for the People’s Republic of China.

The tariff truce between Beijing and Washington had been set to expire Tuesday at 12:01 a.m. EDT (0401 GMT).

The extension until early November buys crucial time for the seasonal autumn surge of imports for the Christmas season, including electronics, apparel, and toys at lower tariff rates.

The new order prevents U.S. tariffs on Chinese goods from rising to 145%, while Chinese tariffs on U.S. goods were set to hit 125% — rates that would have effectively created a virtual trade embargo between the two countries.

For now, the agreement keeps in place a 30% tariff on Chinese imports, with Chinese duties on U.S. imports at 10%.