Tariff extension extended

The tariff pause is extended for another 90 days as negotiators pursue remedies to trade imbalances and market access.

US China extend trade truce by 90 days

On Monday President Trump signed an executive order to extend the tariff pause for another 90 days. That means the 145 percent tariffs on Chinese goods and the 125 percent duties on US shipments stay paused. The extension keeps the 30 percent tariff on Chinese imports in place and China continues a 10 percent tariff on American goods.

White House officials say the extension is aimed at remedying trade imbalances and addressing unfair practices while expanding access for US exporters. Washington notes a nearly 300 billion dollar trade deficit with China in 2024, the largest with any partner. Talks will also cover access to rare earths in China, purchases of Russian oil, and limits on US exports of advanced technology including chips. The US backs a TikTok spin off from ByteDance, a plan Beijing opposes. Trump has relaxed some export restrictions allowing firms like AMD and Nvidia to resume chip sales to China in exchange for sharing 15 percent of revenues with the government. In June, US imports from China fell nearly in half compared with June 2024. In the first six months of the year the US imported 165 billion dollars worth of goods from China, down about 15 percent, while American exports to China were down roughly 20 percent.

The extension buys time for diplomacy rather than delivering a final trade deal. It preserves leverage for negotiations while signaling that both sides are still willing to talk amid domestic political pressure. Markets may breathe easier for now, but the underlying frictions—technology controls, access to resources, and the broader strategic race for influence—remain unresolved. The real risk is a prolonged stalemate that keeps prices and supply chains uncertain, even as lawmakers weigh the political cost of tariffs.

Highlights

Diplomacy moves at a cautious pace as markets gauge the cost of delay and the shape of any future deal.