Trump extends China tariff truce by 90 days, easing trade tensions

US President Donald Trump has extended the U.S.-China trade truce for another 90 days, delaying a potential escalation in tariffs between the world’s two largest economies.

The decision, announced on Monday via Trump’s Truth Social account, keeps “all other elements of the Agreement” intact and pushes back the deadline that was set to expire at 12:01 a.m. Tuesday.

Without the extension, U.S. tariffs on Chinese imports could have risen from 30%, with Beijing likely to respond by increasing its retaliatory duties on American exports. The pause offers both nations additional time to address trade disputes and could pave the way for a summit later this year between Trump and Chinese President Xi Jinping.

U.S. businesses have welcomed the move.

Sean Stein, president of the U.S.-China Business Council, called the extension “critical” for securing a trade deal that improves market access and restores confidence for long-term planning. He stressed the urgency of reaching agreements on issues such as fentanyl that could lead to tariff reductions and revive U.S. agricultural and energy exports.

The extension follows years of aggressive tariff policies by Trump, which have transformed the U.S. into what critics call a “protectionist fortress.”

Average tariffs have risen from 2.5% to 18.6% - the highest since 1933 - according to Yale University’s Budget Lab.

While some trading partners like Japan and the EU accepted deals to avoid harsher measures, China has pushed back with its own leverage, particularly rare earth minerals critical for advanced manufacturing.

After a near-collapse in trade earlier this year - when tariffs soared to triple digits - the two countries agreed in May to scale them back to current levels of 30% for the U.S. and 10% for China. That truce, followed by a June agreement to ease restrictions on computer chip technology and rare earths, has kept negotiations alive.

However, experts remain skeptical about a comprehensive deal.

Claire Reade, former U.S. trade representative for China affairs, said she expects only limited commitments from Beijing, such as increased U.S. soybean purchases and cooperation on fentanyl.

Jeff Moon, a former diplomat and trade official, warned that “the trade war will continue grinding ahead for years into the future.”