Trump buys time, extends US–China tariff by 90 days as truce expires today

Abiola Olawale
Writer

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By Obinna Ezugwa

United States President Donald Trump has signed an executive order extending the temporary suspension of higher tariffs on Chinese goods for another 90 days, giving negotiators more time to reach a lasting trade deal with Beijing. The truce, which had been due to expire today, Tuesday, will now run until November 10.

“I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days,” Trump announced on his Truth Social platform. The extension preserves the May agreement between the two countries to scale back steep levies that had reached prohibitive triple-digit levels earlier this year.

Under the May truce, fresh US tariffs targeting China were reduced to 30 percent, while China cut its corresponding tariffs to 10 percent. Both sides have reportedly confirmed they will maintain those reduced rates until November, or sooner if a comprehensive deal is struck.

Chinese state media, Xinhua, reported that Beijing will also suspend its earlier tariff hikes for 90 days starting August 12, while retaining the 10 percent duty. It added that China would “take or maintain necessary measures to suspend or remove non-tariff countermeasures” in line with a joint declaration reached in Geneva earlier this year.

According to news Agency reports, the White House executive order framed the tariff dispute as a matter of national security, citing “large and persistent annual US goods trade deficits” and a “lack of trade reciprocity” in the relationship. It acknowledged that China had made “significant steps” toward addressing US concerns, but said discussions were ongoing.

Observers say the extension buys time but does not guarantee a breakthrough. “Beijing will be happy to keep the US–China negotiation going, but it is unlikely to make concessions,” said William Yang of the International Crisis Group. He pointed to China’s leverage in rare earth exports — critical minerals for electronics and defense industries — as a potential bargaining chip against Washington.

Sean Stein, president of the US–China Business Council, called the extension “critical” for giving businesses certainty in planning, while former US trade official Wendy Cutler of the Asia Society Policy Institute said it could “pave the way for a Trump–Xi summit this fall.” Still, she warned that securing a final agreement “will be far from a walk in the park.”

Recall that the US–China trade war, which began in 2018 during Trump’s first term, has been one of the most consequential economic conflicts in decades. While temporary truces have eased tensions, the underlying disputes over market access, intellectual property protection, state subsidies, and industrial policy remain unresolved.

If the next 90 days fail to produce a lasting agreement, the risk of a return to punitive triple-digit tariffs looms large — potentially reigniting the full-scale trade war that has rattled the global economy for the past seven years.

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