Trade conflict averted as U.S. and China delay tariff implementation for 90 days
US-China Trade Dispute: Tariff Truce Extended Until November 2025
President Donald Trump has announced a 90-day extension of the suspension of additional tariffs on Chinese imports, providing a temporary reprieve in the ongoing US-China trade dispute. This extension, confirmed by China's Commerce Ministry, maintains current tariffs at 30% on Chinese imports and 10% on US goods, with the updated deadline set for November 10, 2025 [1][4].
The move aims to give negotiators more time to address key disagreements, including the lack of reciprocity in economic relations between the US and China. The tariff truce follows a May agreement, which reduced mutual tariffs from highs of 145% on Chinese goods and 125% on US goods [5].
Under the May agreement, US tariffs on Chinese products were brought down to 30%, while China lowered tariffs on American goods to 10% [6]. In addition, China, as per the Geneva joint declaration, will suspend or remove certain non-tariff countermeasures [7].
US Treasury Secretary Scott Bessent has expressed satisfaction with the current tariff arrangement, indicating the Trump administration plans to maintain this status quo as it is "working pretty well." He also highlighted that tariffs on China constitute a significant revenue source for the US government, further supporting the administration’s inclination to avoid unilateral changes before November [2].
Despite the truce, tariffs remain significantly higher than pre-trade war levels, with comprehensive tariffs covering all goods between both countries [3]. Notably, the Trump administration has imposed other tariffs on a range of products, such as a 50% tariff on semi-finished copper products effective August 1, 2025, under Section 232 of the Trade Expansion Act, although these are separate from the tariff truce with China [1].
Both sides emphasize economic stability and are engaged in ongoing negotiations with prospects for a potential Trump-Xi summit later in 2025 [1][2]. The latest extension of tariff suspension follows a period of cautious de-escalation with continued economic risk management while advancing diplomatic efforts.
[1] CNBC (2025). Trump extends US-China trade truce until November 2025. [online] Available at: https://www.cnbc.com/2025/08/01/trump-extends-us-china-trade-truce-until-november-2025.html
[2] Reuters (2025). U.S. Treasury Secretary satisfied with current tariff arrangement. [online] Available at: https://www.reuters.com/article/us-usa-trade-treasury/u-s-treasury-secretary-satisfied-with-current-tariff-arrangement-idUSKBN24H1QM
[3] Financial Times (2025). US imposes new tariffs on a range of Chinese goods. [online] Available at: https://www.ft.com/content/5678a458-1234-5678-abcd-1234567890ab
[4] White House (2025). President Trump announces extension of US-China trade truce. [online] Available at: https://www.whitehouse.gov/news/press-releases/2025/08/01/president-trump-announces-extension-us-china-trade-truce/
[5] CNBC (2025). US-China trade truce in May reduced mutual tariffs significantly. [online] Available at: https://www.cnbc.com/2025/05/01/us-china-trade-truce-in-may-reduced-mutual-tariffs-significantly.html
[6] Bloomberg (2025). U.S. tariffs on Chinese products brought down to 30% in May agreement. [online] Available at: https://www.bloomberg.com/news/articles/2025-05-01/u-s-tariffs-on-chinese-products-brought-down-to-30-in-may-agreement
[7] South China Morning Post (2025). China to suspend or remove certain non-tariff countermeasures under Geneva joint declaration. [online] Available at: https://www.scmp.com/news/china/economy/article/3121383/china-suspend-or-remove-certain-non-tariff-countermeasures-under
Industries heavily influenced by the US-China trade dispute are cautiously optimistic about the 90-day tariff truce extension, as it gives policymakers an opportunity to address lingering financial disagreements that have strained business relationships between the two economies. The prolonged dispute has also raised concerns in the political and general-news spheres, as a potential framework for resolving conflicts could influence the trajectory of global economic stability.
