Trump extends tariff ceasefire with China for 90 more days through presidential decree
The U.S.-China trade negotiations are currently in a state of stalemate, with a 90-day tariff truce extended as of August 11, 2025. This temporary respite provides a platform for talks to continue, following commitments made under the Geneva Joint Statement from May 2025 and subsequent meetings in London and Stockholm this year.
The tariff landscape for Chinese imports remains complex. The United States has a baseline 10% ad valorem tariff in place since April 2, 2025, which is combined with additional tariffs totalling 55% on certain goods. This 55% includes a 10% baseline ad valorem tariff, 20% fentanyl-related tariffs (since March 4, 2025), and 25% Section 301 tariffs from the earlier Trump administration.
Recently, the U.S. has suspended 24 percentage points of the additional duty rate for 90 days starting August 12, 2025. This move temporarily reduces tariffs on some Chinese imports but retains a 10% tariff. This suspension is part of ongoing negotiations aiming to address trade reciprocity and security concerns.
President Trump's executive orders since spring 2025 have periodically modified tariff rates to reflect retaliation and negotiation progress. Notably, gold imports are exempt from additional tariffs. The overall tariff policy remains dynamic, with the truce providing temporary relief and conditions subject to renewal based on negotiation outcomes.
If a trade deal is reached, it could pave the way for a potential Trump-Xi summit this fall. China's exports reached record highs in 2024, and China will continue suspending its earlier tariff hike for 90 days starting August 12 while retaining a 10-percent duty. President Trump has expressed hope that China will "quickly quadruple its soybean orders" to balance trade with the United States.
However, disagreements have emerged between key economic officials during meetings in London and Stockholm. Negotiating a trade agreement between the U.S. and China will be challenging. The tariff truce extension is critical to give the two governments time to negotiate an agreement.
It is essential to note that Canada and Mexico are under a different tariff regime. Fresh U.S. tariffs targeting China were reduced to 30%, and the corresponding level from China was cut to 10% as part of the May truce. China will take or maintain necessary measures to suspend or remove non-tariff countermeasures against the United States, as agreed in the Geneva joint declaration.
The "reciprocal" tariffs exclude sectors like steel, aluminum, pharmaceuticals, semiconductors, and gold (except for a potential clarification regarding gold bars). The White House has extended the tariff suspension on China until November 10. Trump has taken separate aim at individual countries like Brazil and India. China's exports exceeded expectations in June, climbing 5.8% year-on-year.
In conclusion, while a 90-day tariff truce is currently in effect, the U.S. maintains significant tariffs on China, with the effective tariff rate on many goods averaging around 10-55%, depending on the product category and ongoing executive orders, including a recent temporary suspension of some additional tariffs until November 2025. The outcome of these negotiations will have far-reaching implications for both economies and the global trade landscape.
- The ongoing U.S.-China negotiations, driven by the 90-day tariff truce extension, offer an opportunity for discussions on addressing trade reciprocity and security concerns, which directly impacts the economy and society.
- The current tariff landscape for Chinese imports is intricate, with an average effective tariff rate of 10-55% on various goods due to a combination of ad valorem tariffs and policy-and-legislation decisions.
- The suspension of some additional tariffs on Chinese imports, albeit temporarily, has opened doors for the arts and the general news to scrutinize the impact of this policy change on business and finance, particularly on export sectors like soybeans.
- If a trade agreement is reached, it could lead to politician Trump and President Xi meeting for a potential summit, which would have significant consequences for policy-and-legislation and politics, both domestically and internationally.
- It's crucial to recognize that Canada and Mexico are subject to a separate tariff regime, highlighting the complexities of war-and-conflicts and negotiations involving multiple nations and their diverse economies.
