The US and China have agreed to a 90-day extension on their current tariff truce, averting the imminent hike to punitive triple-digit duties that threatened to disrupt global supply chains.
The agreement, announced Monday by US President Donald Trump via Truth Social and confirmed early Tuesday by China’s Commerce Ministry, comes just as American retailers prepare for the crucial year-end holiday shopping season.
Trump said he has signed an executive order halting the planned tariff increases on Chinese goods until November 10. China, in a reciprocal move, postponed additional tariffs on American firms, as well as plans to add new US companies to its restricted trade and investment lists. The previous agreement was set to expire this week.
The move effectively keeps tariffs steady at 30% for Chinese imports into the US, and 10% for US goods headed to China, rather than the drastically higher levels slated to take effect—145% and 125% respectively. Such hikes would have resembled a near-complete shutdown of bilateral trade.
For retailers and manufacturers, the pause delivers much-needed breathing room before the fall inventory build for electronics, textiles, toys, and other major imports. The truce extension is expected to stabilize prices and mitigate supply chain risks for US businesses relying on Chinese goods, while also offering both nations time to navigate ongoing trade and investment negotiations.
