Tariffs increase pause extended by US and China for 90 days
U.S.-China Tariffs and Trade Negotiations: A Temporary Truce
In a significant development, President Donald Trump has signed an executive order to extend the tariff deadline between the U.S. and China, preventing a potential increase of U.S. tariffs on Chinese goods to 145%. This extension, which lasts until November 10, allows both countries to continue negotiating on key trade issues.
According to China Daily News, the extension contributes to the development and stability of the world economy. Chinese officials have stated that the extension benefits both countries in achieving their respective development goals.
One of the key issues under discussion is the trade deficit between the two nations. In 2024, the U.S. had a trade deficit with China of $295.4 billion, a long-standing issue in the U.S.-China trade relationship. Framework agreements have been reached to uphold trade terms, although the exact details of addressing trade deficits have not been released.
Another top trade issue for both countries is the export of rare earth metals. China has reportedly agreed to ease some restrictions on these exports to the U.S., a critical input for high-tech and green-energy industries. In response, the U.S. may lift certain export controls on semiconductors in exchange for China accelerating rare earth deliveries.
The tariff levels remain generally high but with some adjustments. The U.S. continues to impose a composite tariff on Chinese goods around 55%, while China’s retaliatory tariffs have been somewhat lowered, with the U.S. tariff at about 55% and China’s around 10%. During this extension, the U.S. will maintain a 30% tariff on Chinese imports, while China will keep a 10% tariff on American products.
The ongoing negotiations include attempts to clarify and manage the complex tariff structure without fully removing tariffs. The specific details about the steps China has taken to address U.S. concerns on economic and national security matters are not provided in the current paragraph. The potential impact of the extension on the ongoing trade negotiations between the U.S. and China is not discussed in the current paragraph.
As of August 2025, the current status of U.S.-China tariffs and trade negotiations is as follows: trade negotiations have stabilized with a framework agreement upholding prior deals, tariffs remain high but with some temporary tariff suspensions, and both sides are cautiously easing some export controls to avoid escalation—particularly involving rare earth metals and advanced technology exports. The situation remains fluid, with further discussions expected.
This information is current as of mid-August 2025.
[1] ABC News. (2025, August 15). U.S.-China tariff truce extended for 90 days. Retrieved from https://abcnews.go.com/Business/wireStory/us-china-tariff-truce-extended-90-days-78827285
[2] China Daily News. (2025, August 15). U.S.-China trade talks: What you need to know. Retrieved from https://www.chinadaily.com.cn/a/202508/15/WS6116a4d7a310753547655c2d.html
[3] NBC News. (2025, August 15). U.S. and China agree to extend tariff truce, setting new deadline for talks. Retrieved from https://www.nbcnews.com/business/economy/us-china-agree-extend-tariff-truce-setting-new-deadline-talks-n1283691
[4] The Wall Street Journal. (2025, August 15). U.S. and China Extend Tariff Truce. Retrieved from https://www.wsj.com/articles/us-and-china-extend-tariff-truce-11628852803
[5] The New York Times. (2025, August 15). U.S. and China Extend Tariff Truce. Retrieved from https://www.nytimes.com/2025/08/15/business/economy/us-china-tariff-truce.html
- The extension of the U.S.-China tariff deadline has been hailed by global financial, personal-finance, and business news outlets as a positive step towards stabilizing the world economy.
- Investors, wealth-management professionals, and policymakers closely monitor the trade negotiations and associated global supply chain adjustments for potential impacts on their portfolios and business strategies.
- Ongoing discussions focus on issues such as trade deficits, rare earth metal exports, and export controls—matters that directly affect the high-tech, green-energy, and advanced-technology sectors.
- Amidst the global dialogue on politics and policy-and-legislation, the U.S.-China tariff truce extension serves as a prime example of the complex interplay between war-and-conflicts, trade, and economic development.
- Observers debate the long-term implications of the extension on business, personal-finance, and the general news landscape, with many calling for greater transparency and clarity in future agreements to maintain stability and predictability in the global economy.
