US and China Agree to Extend Trade Truce
Just hours before tariffs were set to soar on goods traded between them, the US and China agreed to extend their trade truce for another 90 days. President Donald Trump signed an executive order on Monday to maintain US tariffs on Chinese imports at 30%, while China kept its 10% tariff on American goods. This pause follows months of tense back-and-forth tariff hikes that at one point reached as high as 145% from the US and 125% from China. The extension is meant to provide more time for negotiations aimed at addressing trade imbalances, unfair practices, and broader economic issues.
The ongoing talks cover a range of sticking points, including access to China's rare earth minerals, purchases of Russian oil, and restrictions on US technology sales to China. Trump has eased some export limits recently, allowing chipmakers like AMD and Nvidia to sell to China under certain conditions, though the deal has drawn criticism as a “shakedown.” Meanwhile, the US is pushing for TikTok’s sale to an American buyer, a move opposed by Beijing. Despite the truce, trade flows have already slowed this year, with US imports from China down nearly 15% in the first half of 2025, and exports dropping roughly 20%.
While the truce avoids an immediate tariff spike, some business owners remain frustrated by the uncertainty. Beth Benike, who runs a small business importing goods, told BBC Radio 4, “There’s no way to plan for the future... I have no idea what the tariff is actually going to end up being.” Trump, meanwhile, has called on China to boost purchases of US soybeans and reduce the trade deficit, but it’s unclear if Beijing will respond. The extension reflects a cautious but ongoing effort to manage one of the world’s most important and complicated trade relationships amid political and economic tensions.
