Respite has come for businesses as the US and China have extended their trade truce for another 90 days, just hours before the world’s two biggest economies were ready to raise tariffs on each other.
On Monday, US President Donald Trump signed an executive order to continue the truce until 10 November, while Beijing also announced it would extend its tariffs pause.
It means the US will hold its levy on Chinese imports at 30%, while China will keep a 10% tariff on American goods.
Washington had threatened tariffs as high as 145% on Chinese goods earlier this year, with Beijing hitting back with 125% duties on US shipments. The rates for both countries were scaled back after a round of trade talks held in Geneva in May.
The White House said the latest truce extension will give more time for further negotiations about “remedying trade imbalances” and “unfair trade practices” .
It cited a trade deficit of nearly $300bn (£223bn) with China in 2024 – the largest among any of its trading partner.
The talks will also aim to increase access for US exporters to China and address national security and economic issues, the statement said.
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.”
In the statement, China also called on the US to lift its “unreasonable” trade restrictions, work together to benefit companies on both sides and maintain the stability of global semiconductor production.
