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US and China extend tariff truce by 90 days, avoiding sharp duty increases

The United States and China have agreed to extend their tariff truce for an additional 90 days, preventing a steep rise in duties on each other’s goods just as U.S. retailers prepare for the crucial holiday shopping season.

President Donald Trump announced on his social media platform that he signed an executive order to suspend the planned tariff hikes until November 10, keeping all other terms of the agreement intact, News.Az reports, citing Reuters.

China’s Commerce Ministry followed with a matching decision to delay additional tariffs and maintain current trade restrictions for the same period.

The extension halts an expected surge that would have pushed U.S. tariffs on Chinese goods up to 145%, while China’s tariffs on American products would have reached 125%. Instead, tariffs remain at 30% on Chinese imports and 10% on U.S. imports for now.

This pause buys important time for retailers importing electronics, apparel, and toys ahead of the Christmas season and provides a window for further negotiations.

While both nations aim to avoid further deterioration in their trade relationship, analysts warn that risks remain.

Markets responded positively to the news, with Asian stocks rising after weeks of stagnation. Trump recently hinted at a potential trade deal and an upcoming meeting with Chinese President Xi Jinping before year-end.

Trade talks between the two sides have been ongoing since May, with prior extensions agreed upon after meetings in Geneva and Stockholm.

Experts note that despite tensions, the deep economic interdependence between the U.S. and China makes a long-term trade war unlikely.

The extended truce allows both countries to continue negotiating critical issues, including trade imbalances and technology access, as well as U.S. concerns about China’s purchase of Russian oil amid the Ukraine conflict.

 



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