Trump extends US-China trade truce by 90 days

US President Donald Trump has extended the trade ceasefire with China for another 90 days, postponing what could have been another escalation in tensions between the world’s largest economies.

Announcing the move on his Truth Social account on Monday, Trump said he had signed an executive order for the extension and confirmed that “I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days. All other elements of the Agreement will remain the same. Thank you for your attention to this matter!”.

The truce had been set to expire just after midnight on Tuesday, which could have triggered a US tariff hike on Chinese imports from the already steep 30% rate. In turn, China was expected to raise retaliatory duties on American goods.

By prolonging the pause, Washington and Beijing now have more time to address ongoing disputes and potentially pave the way for a meeting between Trump and Chinese President Xi Jinping later this year. US businesses with operations or trade ties in China have welcomed the move.

The Trump administration has already reshaped global trade by imposing high tariffs on numerous countries, compelling allies like Japan and the European Union to accept agreements that include US import duties of around 15% terms once considered politically impossible to avoid harsher measures.