The U.S. and China agree to tariff truce for another 90 days
News | By Easton Martin | August 12, 2025
The United States and China have agreed to extend their tariff truce for another 90 days, postponing a potentially disruptive escalation in trade tensions. President Donald Trump confirmed via Truth Social that he signed an executive order delaying the scheduled increase in tariffs until November 10, 2025, with all other terms of the existing agreement remaining in place.
In tandem, China’s Ministry of Commerce announced a reciprocal pause on the implementation of further tariffs on U.S. goods. The extension comes just hours before what could have been a sharp escalation in duties, relieving uncertainty for U.S. businesses and retailers gearing up for the end of year holiday season.
Financial markets reacted positively, with gains across Asian and European equities as optimism grows for more substantive trade negotiations and even speculation of a potential summit between Trump and Chinese President Xi Jinping.
Despite the temporary reprieve, key disagreements remain unresolved, including issues related to intellectual property, industrial subsidies, rare earth controls, and fentanyl supply routes, suggesting that broader negotiations are likely to continue.
