Temporary agreement aims to preserve trade stability
The United States and China have agreed to extend their tariff truce for an additional three months, avoiding a sharp increase in duties and allowing more time to address ongoing economic and security concerns.
Extension details
An executive order signed by the U.S. president acknowledged that China had taken meaningful steps to address certain issues. Beijing made the same announcement simultaneously.
Under the extension, current tariff rates will remain unchanged: 30% on Chinese exports to the U.S. and 10% on U.S. exports to China. The 90-day window will be used to negotiate matters such as reducing the trade deficit, securing the supply of rare earth minerals, and diversifying supply chains.
Background and previous talks
The trade dispute was reignited after the recent U.S. presidential inauguration, with tariff increases from both countries. Key points of contention include restrictions on semiconductors, China’s purchases of Russian oil, and controls on rare earth mineral exports.
In May, during a meeting in Geneva, both nations agreed to a 90-day truce that temporarily lowered tariffs and eased trade barriers. However, mutual accusations of non-compliance followed, leading to further talks — including a meeting in Stockholm last month — which ended without a finalized deal.
Outlook for the coming months
Experts anticipate more technical discussions in the coming weeks to lay the groundwork for a possible meeting between both nations’ leaders. A future agreement could involve changes to technology restrictions and potential investment commitments.
Despite the truce extension, bilateral trade has continued to decline since the start of the year. Official data shows that Chinese exports to the U.S. have fallen for four consecutive months, while imports from the U.S. dropped by 10.3% between January and July.
