Trump Extends Tariff Truce with China for 90 Days Amid Ongoing Trade Negotiations

In a significant move just hours before the expiration of the last trade agreement, US President Donald Trump has decided to extend the tariff pause on Chinese goods for another 90 days. This decision, reported by various US media outlets, was formalized through an executive order signed by Trump on Monday. The previous tariff agreement was set to lapse just after midnight on Tuesday, but this new order will delay the implementation of additional tariffs, pushing the potential hike to about 145%. The announcement comes during a tense period of negotiations between the world's two largest economies, which has seen both parties maneuvering to seek favorable terms. Earlier the same day, Chinese officials expressed optimism about the trade discussions. Chinese Foreign Ministry spokesman Lin Jian highlighted Beijing's desire for a constructive engagement, stating, 'We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state and strive for positive outcomes on the basis of equality, respect, and mutual benefit.' Despite the hopeful statements from China, Trump added a layer of uncertainty by simply stating, 'We'll see what happens,' when questioned about the impending deadline for further negotiations with Beijing. Nevertheless, the president noted that China has been 'dealing quite nicely' and complimented his relationship with Chinese President Xi Jinping, suggesting a level of camaraderie exists between the two leaders. Last month, discussions took place in Stockholm between Chinese and US officials, where both parties expressed a shared expectation of extending the tariff truce. US Treasury Secretary Scott Bessent commented on the positive trajectory of negotiations, indicating that while progress has been made, fine-tuning the framework and agreeing on specific details remain crucial. The looming US-China trade deal could bear significant ramifications for global economics. The US has warned of imposing tariffs on Chinese products amounting to 245 billion dollars, to which China has retaliated with its own proposed tariffs preliminarily set at 125 billion dollars. This intense tariff conflict has caused turbulence in global stock markets, raising fears of a potential trade war that could have devastating impacts on economies worldwide. As of now, both nations, which together boast a combined GDP close to 50 billion dollars, will continue their discussions over the next 90 days, with White House officials expressing cautious optimism that a comprehensive deal can be struck before the new deadline expires. Related Sources: • Source 1 • Source 2