- US and China extend trade deal by 90 days, delaying planned tariff hikes.
- Current tariffs remain at 30% on Chinese imports and 10% on US goods.
- Extension aims to address trade imbalances, market access, and security issues.
The US and China have prolonged their trade agreement for an additional 90 days, shortly before the two largest economies were scheduled to increase tariffs on imports from one another.
US President Donald Trump signed an executive order to maintain the halt until 10 November, and Beijing similarly declared an extension. This indicates that the US will maintain a 30% tariff on Chinese imports, whereas China will uphold a 10% duty on American products.
Earlier this year, Washington threatened to impose trade taxes as high as 145% on Chinese goods, while Beijing responded with 125% tariffs on US exports. The rates for each country were reduced following trade discussions conducted in Geneva in May.
The most recent extension will allow additional time for further talks on "remedying trade imbalances" and "unfair trade practices", the White House said.
It reported a trade deficit of almost $300bn (£223bn) with China in 2024 - the highest with any of its trading partners. The statement indicated that the discussions will seek to enhance access for US exporters to China and tackle issues related to national security and the economy.
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A spokesperson for the Chinese embassy in Washington said, "Win-win cooperation between China and the United States is the right path; suppression and containment will lead nowhere."
China urged the US to remove its "unreasonable" trade barriers, collaborate to support businesses on both sides, and ensure the stability of global semiconductor manufacturing. Tariffs - taxes imposed on products purchased from foreign nations, usually calculated as a percentage of a product's worth - have been a significant priority for Trump since he returned to the White House in January.
He has consistently stated that tariffs will lead US consumers to purchase more domestically produced products, enhance tax revenue, and stimulate investment. Pointing to his global trading partners, the US president has claimed that his nation has been exploited by "cheaters" and "plundered" by outsiders.