U.S. President Donald Trump has signed an executive order extending the current pause on tariffs against China for another 90 days, preventing a scheduled escalation in the ongoing trade dispute between the two countries. The decision comes as the original 90-day suspension—agreed to in late July—was set to expire this week.
The pause maintains tariffs at 30% on Chinese goods entering the United States, as established under a May agreement, while China will continue to apply a 10% tariff on U.S. goods. The extension reflects terms reached during talks in Stockholm, Sweden, two weeks ago.
Trump launched the trade confrontation on April 2 with his so-called “Liberation Day” tariffs, imposing steep duties on multiple countries. China responded with its own measures, triggering a rapid escalation that saw U.S. tariffs on Chinese goods surge to 145% and Chinese tariffs on American products rise to 125%.
The month-long tariff war rattled global markets and spurred concern within Washington over supply chain vulnerabilities. In particular, China’s restrictions on exports of rare earth minerals—critical to U.S. high-tech manufacturing, automotive production, and defense industries—pressured the administration to seek a compromise.
An initial deal in mid-May brought temporary relief, but negotiations continued amid lingering tensions. Talks were held in June in London and again in late July in Sweden as both sides sought to manage the expiration of the original tariff pause.
Analysts say Trump’s decision to extend the suspension could signal reluctance to impose the 100% tariffs on China he threatened last month over its purchases of Russian energy. While India faced a 50% tariff hike—partially linked to its Russian energy imports—China has so far avoided such a measure, despite U.S. warnings during the latest round of negotiations.
According to Treasury Secretary Scott Bessent, who led the Stockholm talks, Beijing largely dismissed U.S. concerns over its energy imports from Russia. The new extension pushes the deadline for a potential trade deal—or another pause—into mid-November.