12 Aug 2025 03:52AM (Updated: 12 Aug 2025 03:56AM)
WASHINGTON: US President Donald Trump has signed an executive order extending a tariff truce with China by another 90 days, the White House said on Monday (Aug 11), hours before steep tariff increases were due to take effect.
The move prevents US tariffs on Chinese goods from rising to 145 per cent and Chinese tariffs on US goods from climbing to 125 per cent, levels trade experts said would have amounted to a virtual embargo.
AVERTING A DEADLINE
A day earlier, Trump had urged Beijing to quadruple purchases of US soybeans but gave a noncommittal answer when asked if he would extend the lower tariff rates.
“We’ll see what happens,” Trump told reporters at the White House. “They’ve been dealing quite nicely. The relationship is very good with President Xi (Jinping) and myself.”
Imports from China are currently subject to 30 per cent tariffs, made up of a 10 per cent base rate and 20 per cent in fentanyl-related duties imposed earlier this year. China had matched the de-escalation, lowering its tariffs on US imports to 10 per cent.
NEGOTIATIONS CONTINUE
Beijing and Washington agreed to the 90-day truce in May after talks in Geneva, with further discussions held in Stockholm in July. Those meetings did not produce a formal extension until Monday’s order.
Kelly Ann Shaw, a former White House trade official under Trump, said the president often pushed decisions to the last minute and predicted the truce could be extended again. “The whole reason for the 90-day pause in the first place was to lay the groundwork for broader negotiations,” she said.
Ryan Majerus, a former US trade official now with King & Spalding, said the extension would “undoubtedly lower anxiety on both sides” and give time to address long-standing trade concerns.
WIDER ECONOMIC ISSUES
The White House did not elaborate beyond Trump’s remarks, and the Treasury Department and US Trade Representative’s Office declined to comment.
Treasury Secretary Scott Bessent said Washington was optimistic about reaching a deal. Trump has also been pressing China to halt purchases of Russian oil, threatening secondary tariffs if Beijing does not comply.
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