President Donald Trump has signed an executive order extending the deadline for higher tariffs on China by 90 days, just hours before the previous agreement was set to expire. The new deadline is 10 November, according to officials.
China's commerce ministry responded by announcing it will suspend additional tariffs on US goods for the same period, maintaining existing tariffs at 10%. China will also postpone for 90 days the addition of US firms to trade and investment restriction lists, and take action to address non-tariff barriers facing American products.
A foreign ministry spokesperson, Lin Jian, expressed hope that the US would work with China for positive outcomes based on equality and mutual benefit. Both sides had expected the extension after recent trade talks in Stockholm, with US Treasury Secretary Scott Bessent expressing optimism about a potential deal.
Failure to reach an agreement could have severe consequences, as Trump had threatened tariffs as high as 245% and China retaliatory tariffs of 125%. Currently, US exports to China face tariffs of about 30%, while Chinese imports face a baseline 10% tariff plus an extra 20% related to fentanyl allegations.
Economists warn that tariffs push up prices in the US. Goldman Sachs estimates US consumers have absorbed 22% of tariff costs through June 2025, a figure expected to rise. Meanwhile, chipmakers Nvidia and AMD agreed to pay the US government 15% of revenue from advanced chips sold to China in exchange for export licenses, a move described by former trade negotiator Stephen Olson as a dangerous monetisation of trade policy.
