U.S. and China Extend Tariff Truce, Delaying Steep Trade Duties Ahead of Holiday Season

The United States and China have agreed to extend their tariff truce for another 90 days, averting a dramatic escalation in trade duties that could have crippled cross-Pacific commerce. The deal comes just as U.S. retailers prepare to stock up for the crucial end-of-year holiday shopping season.

U.S. President Donald Trump announced the extension on Monday via his Truth Social platform, confirming he had signed an executive order delaying higher tariffs until 12:01 a.m. EST (0501 GMT) on November 10. Beijing responded with a similar move early Tuesday, also postponing additional tariffs and holding off on adding U.S. companies to trade and investment restriction lists.

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“The United States continues to have discussions with the PRC to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns,” Trump’s order stated, referring to the People’s Republic of China.

The truce, originally set to expire early Tuesday, buys valuable time for the seasonal autumn import surge, which includes electronics, apparel, and toys—goods heavily in demand during the Christmas shopping period.

Without the extension, U.S. tariffs on Chinese goods would have soared to 145%, while China’s duties on American imports would have jumped to 125%, effectively halting most trade between the two economic giants.

For now, the agreement keeps existing rates in place—30% tariffs on Chinese imports to the U.S. and 10% tariffs on American goods entering China—giving both sides breathing room to continue negotiations.

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In Beijing, the decision was met with cautious relief as officials seek to navigate Trump’s trade policies, which challenge the country’s long-standing export-driven growth model. While the pause avoids immediate economic disruption, the underlying disputes over trade reciprocity and national security remain unresolved.

This latest development underscores the fragile nature of U.S.-China trade relations, with the next 90 days likely to be critical in determining whether the truce leads to a lasting agreement—or another round of escalating tariffs.

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