Trump Prolongs China Trade Truce, Pushing August 12 Tariff Deadline Further
President Trump has signed an executive order, extending the tariff truce with China for another 90 days. This move pushes the critical trade deadline beyond August 12, 2025. The extension comes in the wake of intensive negotiations in Stockholm between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
During the current pause, U.S. tariffs on Chinese goods have been reduced from 145% to 30%, while Chinese duties dropped from 125% to 10%. This extension provides a much-needed breathing room for both economies as they work toward a comprehensive trade agreement.
However, in a simultaneous move, Trump has implemented new tariff rates of 10-41% on over 60 other countries. Most of these new rates will take effect on August 7th. The ongoing trade war has significantly impacted global markets, with importers facing an average tax increase of nearly $1,300 per U.S. household in 2025.
Source: Yahoo Finance