Charles Esther
On August 11, 2025, President Donald Trump signed an executive order granting a 90-day extension to the US–China tariff truce.
This decision delays a planned increase to 145% tariffs on Chinese imports and 125% on U.S. exports.
Until November 10, 2025, both sides will maintain their current rates — 30% U.S. tariffs on Chinese goods and 10% Chinese tariffs on U.S. products.
The White House said the move was aimed at addressing “trade imbalances” and ensuring “economic stability” during the busy retail season.
Stockholm Negotiations Pave the Way for Extension
The renewed agreement follows high-level talks in Stockholm on July 28–29, 2025, conducted under the Geneva Joint Statement framework.
Delegates agreed to suspend 24% of additional ad valorem duties and relax certain non-tariff barriers.
China also pledged to lift specific export controls and suspend measures under its “unreliable entity” list.
U.S. negotiators said the truce gives both countries time to address national security issues and secure access to rare earth materials.
Key Disputes Remain Over Technology and Energy
Despite the temporary calm, tensions remain over China’s purchase of Russian oil and U.S. restrictions on technology exports.
Nvidia and AMD reached a deal to pay 15% of China-related AI chip revenues to the U.S. government in exchange for retaining export licences.
Meanwhile, Beijing has reportedly advised local firms to avoid using Nvidia’s H20 chip, citing national security concerns.
Analysts Warn of Complications in Future Talks
Experts caution that ongoing disputes over tech controls and energy imports could hinder progress in future trade negotiations.
With the tariff truce set to expire in early November 2025, unresolved issues may resurface quickly.
Trump–Xi Meeting Expected Before Deadline
A face-to-face meeting between Trump and Chinese President Xi Jinping is anticipated in late October 2025, possibly during the ASEAN Summit in Kuala Lumpur, Malaysia.
This summit may cover industrial subsidies, market access, and reciprocal tariffs.
However, there is no confirmation that a comprehensive trade deal will be reached before the current truce ends.
Markets Respond Positively to Short-Term Stability
Analysts say the extension has boosted short-term confidence for importers and manufacturers, particularly in sectors affected by tariff volatility and supply chain risks.
While the move signals a willingness to negotiate, experts note that deep-rooted structural issues remain unresolved.
David Awoyode