President Trump signed an executive order on 11 August 2025, extending the US-China tariff truce by 90 days. The move delays a planned hike to 145% tariffs on Chinese goods and 125% on US exports.
Both countries will maintain current rates of 30% for US tariffs and 10% for China until November 10. The White House cited the need to “remedy trade imbalances” and “preserve economic stability” during peak retail season.
STOCKHOLM TALKS ENABLED THE TRUCE RENEWAL
The extension follows bilateral negotiations held in Stockholm on 28-29 July 2025, under the Geneva Joint Statement framework. Delegates agreed to suspend 24% of additional ad valorem duties and ease non-tariff barriers.
China committed to lifting certain export controls and suspending its “unreliable entity” list restrictions. US officials confirmed the truce would allow time to address national security concerns and rare earth access.
TECH EXPORTS AND OIL PURCHASES REMAIN STICKING POINTS
Despite the truce, unresolved issues persist, including China’s purchases of Russian oil and US tech export restrictions.
Nvidia and AMD agreed to pay 15% of China-related AI chip revenues to the US government to retain export licences. Beijing has reportedly urged firms to avoid Nvidia’s H20 chip, citing national security risks.
Analysts warn that unresolved tensions, including tech export controls and oil purchases, could complicate or delay future trade negotiations, especially given that the tariff truce is set to expire in early November 2025.
LEADERS’ SUMMIT EXPECTED BEFORE TRUCE EXPIRATION
A summit between Trump and Xi Jinping is expected in late October, likely on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia.
The expected Trump–Xi summit may advance negotiations on industrial subsidies, market access, and reciprocal tariffs, but no final trade deal has been confirmed.”
Experts say the truce extension stabilises markets and signals diplomatic intent but warn that deeper structural issues remain unresolved.
Analysts say the move “boosts short-term confidence among importers and manufacturers,” particularly in sectors exposed to tariff volatility and supply chain disruptions.
WILL TRUMP-XI SUMMIT END OR EXTEND TRADE TENSIONS?
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