Trump Delays China Tariff Hike in Last-Minute Deal
US-China trade truce extended, averting economic clash.
President Donald Trump signed an executive order on Monday extending a US-China trade truce for another 90 days, narrowly averting a costly escalation that could have spiked tariffs on Chinese goods to 145% and triggered retaliatory levies from Beijing, a White House official confirmed. The move, announced on Trump’s Truth Social platform, keeps US tariffs at 30% and Chinese tariffs at 10%, buying time for negotiations as retailers brace for the holiday season.
The truce, set to expire at 12:01 am Tuesday, follows months of tense talks after a May agreement in Geneva slashed tariffs from triple-digit highs that had rattled global markets. The extension could pave the way for a Trump-Xi Jinping summit later in 2025, though deep-seated issues like China’s intellectual property policies and industrial subsidies remain unresolved, experts warn.
Sean Stein of the US-China Business Council called the extension “vital” for US firms seeking better market access in China and stability for long-term planning. “A deal on fentanyl and tariff reductions could boost US agriculture and energy exports,” Stein noted. However, analysts like Ali Wyne from the International Crisis Group caution that Trump’s aggressive tariff strategy has exposed US vulnerabilities, with China leveraging its control over rare earth minerals to counter US pressure.
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In June, both nations eased tensions by relaxing restrictions—China on rare earth exports, the US on chip technology and ethane. Yet, with a $262 billion US trade deficit with China last year, a comprehensive deal seems elusive. “Tough issues will persist, and the trade war will drag on,” said Jeff Moon, a former US trade official.
