Key Points
- The U.S. and China have extended their tariff truce for another 90 days, until November 10.
- The extension prevents tariffs from jumping to over 100% on both sides.
- The move buys crucial time for U.S. retailers ahead of the holiday shopping season.
- The current tariff rates of 30% (on Chinese goods) and 10% (on U.S. goods) will remain in place.
The United States and China have extended their tariff truce for another 90 days, pulling back from the brink of a full-blown trade war. President Trump announced the extension on Monday, just hours before the previous truce was set to expire.
The move prevents a massive escalation of tariffs and buys critical time for both sides, especially as U.S. retailers get ready for the crucial holiday shopping season.
The new agreement pushes the deadline to November 10. Without it, U.S. tariffs on Chinese goods were set to jump to a staggering 145%, with Chinese tariffs on U.S. goods hitting 125%. For now, the current tariff rates—30% on Chinese imports and 10% on U.S. imports—will remain in place.
The extension comes after a flurry of last-minute talks and a recommendation from U.S. negotiators to give the process more time. Treasury Secretary Scott Bessent has repeatedly said that the triple-digit tariffs were unsustainable and had created a virtual trade embargo between the world’s two largest economies.
While the extension brings some relief, many see it as just a temporary pause in a long and difficult negotiation. President Trump had been pushing for more concessions from China, including a demand on Sunday that they quadruple their purchases of U.S. soybeans.
For now, the extension lowers the immediate anxiety, but the underlying tensions remain. The two economic superpowers will now have another three months to try to work through their deep-seated disagreements over trade and technology.
