In a last-minute move to avert a sharp escalation in the U.S.–China trade dispute, President Donald Trump on Monday signed an executive order extending a pause on high tariffs for an additional 90 days. The decision, announced mere hours before the existing truce was set to expire on August 12, pushes the deadline into mid-November, according to a White House official.
The extension comes on the heels of late-July negotiations in Stockholm, where American and Chinese envoys sought to cool tensions that have repeatedly threatened to spiral into an all-out trade war, writes The New York Times. Without Trump’s order, U.S. tariffs on Chinese goods would have reverted to their April peak of 145%, while Beijing’s retaliatory duties on American exports would have climbed to 125%. Under the current agreement, rates remain at 30% for U.S. tariffs and 10% for Chinese tariffs—levels established in May following talks in Geneva.
The decision underscores the volatile rhythm of Trump’s trade strategy, in which tariff levels have been imposed, delayed, and revised with little warning. His “reciprocal tariffs,” first unveiled in April, underwent multiple delays and modifications before taking effect in a revised form only last week. This latest pause offers temporary relief to businesses caught in the crosswinds of policy whiplash, though it leaves them no less wary of sudden reversals.
On Sunday, Trump coupled the announcement with a blunt demand that China “quickly quadruple” its purchases of U.S. soybeans—casting the proposal as both a boon to American farmers and a way to “substantially reduce China’s Trade Deficit with the USA.” The post on Truth Social coincided with a modest rise in Chicago soybean prices Monday, though there is no confirmation from Beijing that such purchases will materialize.
For now, the extension buys negotiators more time to chase a lasting settlement, with both sides indicating a willingness to keep talking. Yet the absence of predictable rules—and the looming prospect of tariff spikes—continues to cloud the economic outlook for businesses dependent on stable U.S.–China trade.
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