President Donald Trump has ordered a 90-day extension of the U.S.-China trade truce, signing an executive order just hours before higher tariffs were set to return. The move pushes the deadline to November 10 and keeps tariff rates at their current levels while negotiations continue.

Under the extension, the U.S. will maintain its 30 percent tariff on Chinese imports, and China will keep its 10 percent duty on American goods. Both sides framed the decision as an opportunity to continue discussions on what the White House described as “remedying trade imbalances” and addressing “unfair trade practices.” The administration has pointed to the nearly $300 billion trade deficit with China in 2024 as one of the largest with any trading partner.

In a Truth Social post, Trump wrote, “I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days. All other elements of the Agreement will remain the same.” Chinese state media confirmed that Beijing would also extend its tariff suspension, describing the move as a continuation of “win-win cooperation” between the two countries.

Why Trump Decided to Extend

Trump has made it clear that he does not view trade deadlines as immovable if progress is being made. In his approach, extensions can be a practical tool to secure a better outcome. Earlier this year, the U.S. and China imposed tariffs as high as 145 percent and 125 percent respectively before scaling them back after talks in Geneva. Trump has often used this cycle of escalating and pausing tariffs to press for better terms, arguing that the U.S. has been “taken advantage of by cheaters” and “pillaged by foreigners.”

Speaking on Sunday before the announcement, Trump said dealings with China had been going “nicely” and urged Beijing to “quickly quadruple” its purchases of U.S. soybeans. He added that such a move would be “a way of substantially reducing China’s Trade Deficit with the USA.” Chicago soybean prices rose the next day on speculation about increased orders.

A White House statement stressed that the extension would allow more time to address national security concerns, improve market access for U.S. exporters, and stabilize trade flows. “If the deadline were not extended, then U.S. duties on China would have shot back up to where they stood in April,” a senior official said, referring to the peak of the tariff war earlier this year.

Short-Term Economic Impact

The markets responded with enthusiasm. Asian stock indexes surged to record highs on hopes that the pause could lead to a broader agreement. In the U.S., the reaction was also positive, though business leaders expressed mixed views.

Sean Stein, president of the U.S.-China Business Council, said the extension was “critical to give the two governments time to negotiate an agreement” that could give companies more stability. “This is a necessary step to provide certainty for planning,” he said. However, others warned that repeated short-term pauses add to the difficulty of long-term business forecasting. Beth Benike, founder of Busy Baby, told the BBC, “Since I have no idea what the tariff is actually going to end up being I have no control or idea about the pricing that’s going to work for my business.”

The Path to the Latest Truce

The extension follows a series of high-level meetings this year. Negotiators first reached a temporary tariff reduction agreement in Geneva in May, then met in London in June to address disputes that had emerged. The most recent talks in Stockholm in late July produced the agreement to extend the pause.

China’s announcement mirrored the U.S. decision, with the Customs Tariff Commission suspending 24 percentage points of its earlier tariff hike for another 90 days while retaining the 10 percent base rate. Chinese officials said this showed “the equal and reciprocal footing between China and the U.S.,” a stance they intend to maintain.

Analysts note that unresolved issues remain, including Chinese purchases of Russian oil, rare earth exports, and U.S. restrictions on advanced technology sales. Some restrictions have been relaxed under new arrangements that require American chipmakers to share a percentage of their revenue with the U.S. government in exchange for access to the Chinese market, a deal that has been criticized by opponents as a “shakedown.”

The 90-day pause is being described as a tactical move rather than a breakthrough. Trade flows between the two nations have already slowed sharply. U.S. government data shows imports from China in June were nearly half of what they were a year earlier, while American exports to China fell by roughly 20 percent in the first half of 2025.

Some observers see the extension as setting the stage for a possible Trump-Xi summit later this year. Wendy Cutler of the Asia Society Policy Institute said the truce “paves the way” for such a meeting, but cautioned that “this will be far from a walk in the park.”

For now, the decision avoids a return to the punishing tariffs of earlier in the year, while keeping pressure on China to offer more favorable trade terms. It reflects Trump’s belief that if talks are making progress, extending a deadline is not a sign of weakness but of “good common sense” negotiation. Whether the additional 90 days leads to a lasting agreement will depend on the willingness of both sides to make meaningful concessions.

ACZ Editor: Trump is doing what Trump does best – negotiate. But China will still attempt to take advantage, the question isn’t where the U.S. will get a better deal, it certainly will, but whether the deal will be good enough as a trade deal and as protection against China’s attempts to undermine the U.S. by stealing technology and spying on our people.