President Donald Trump has signed an executive order extending a 90-day ceasefire in the U.S.-China trade war, delaying a sharp hike in tariffs on Chinese goods, the White House announced on Monday.
The order will maintain current tariffs at 30%, a rate set in mid-May when both countries agreed to temporarily ease their tit-for-tat levies that had previously soared above 100%. Without the extension, tariffs on certain Chinese imports could have jumped to at least 80% starting Tuesday, according to U.S. Trade Representative Jamieson Greer.
Under the new order, the United States will continue to impose a 10% “reciprocal” tariff on Chinese goods until at least November 10, in addition to an existing 20% penalty tariff linked to fentanyl trafficking, keeping the total rate at 30%. In response, China’s Commerce Ministry confirmed it will maintain a 10% tariff on U.S. goods.
“The United States and China have engaged in multiple rounds of productive negotiations to address trade reciprocity and national security concerns,” the White House said in a fact sheet outlining the move.
Commerce Secretary Howard Lutnick said last week that both countries were “likely” to approve the 90-day extension as they work toward a broader trade deal. President Trump told reporters Monday that talks were progressing “quite nicely,” following recent negotiations in Stockholm late last month.
Greer, speaking earlier this month on CBS’s Face the Nation, warned that a return to elevated tariffs would not benefit either country.
“We’re working on some technical issues, and we’re talking to the president about it,” Greer said. “I think it’s going in a positive direction.”
Analysts say restoring the higher tariff rates could cause a steep drop in U.S. imports of Chinese goods, disrupting trade flows between the world’s two largest economies. In mid-April, when U.S. tariffs on Chinese imports stood at 145%, the Trump administration was already preparing for possible supply chain disruptions.
In 2024, China ranked as America’s third-largest trading partner after Canada and Mexico (excluding the EU). U.S. government data shows the United States imported $438.9 billion in Chinese goods last year, while China imported $143.5 billion in American goods.
The current dispute began in early April when Trump imposed 34% “reciprocal” tariffs on Chinese goods, part of a broader effort to pressure countries he accused of unfair trade practices. While most nations saw their tariffs suspended shortly afterward, China faced weeks of elevated duties that climbed to 145% on U.S. goods, prompting Beijing to retaliate with 125% tariffs on American exports.
In May, both sides agreed to scale back — the U.S. to 30% and China to 10% — for 90 days while pursuing a long-term agreement. Talks, however, have remained tense, with disputes over rare earth exports, semiconductor restrictions, and U.S. crackdowns on Chinese international students.
Trump has also accused Beijing of breaching the May truce, though a partial resolution was reached in June. Just this past Sunday, the president urged China to quadruple imports of U.S. soybeans as part of ongoing discussions.
The extended tariff freeze gives both countries until early November to finalize a potential long-term deal. While Trump argues tariffs can strengthen U.S. manufacturing and correct trade imbalances, many economists caution that sustained high duties risk higher consumer prices and slower economic growth.
If no agreement is reached before the new deadline, the U.S. could move to reinstate much higher tariffs; a step that could reignite the trade conflict and further unsettle global markets.
