US President Donald Trump has extended the tariff moratorium on China until November 10, providing a 90-day window for further negotiations between the two economic powers.
The decision came just hours before the moratorium was set to expire, signalling ongoing diplomatic manoeuvres to resolve long-standing trade disputes.
Trump announced the move on Truth Social late on Monday, stating, “I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days.”
During this period, the US will maintain its tariff rate at 30 per cent, while China will continue its 10 per cent rate.
Earlier, speaking to reporters, Trump struck an optimistic tone, “We’ve been dealing very nicely with China. The relationship is very good with President Xi (Jinping) and myself.”
US and Chinese trade officials held their third round of direct talks in Sweden last month but failed to secure an agreement that satisfied Washington.
The current moratorium follows a turbulent year in which trade tensions reached a peak in April, when Trump imposed a 145 per cent tariff on Chinese goods.
Beijing retaliated with a 125 per cent tariff and a ban on exports of rare earth elements essential to US manufacturing in multiple sectors.
A month later, both nations agreed to a 90-day truce, reducing tariffs and resuming limited rare earth exports from China.
This fragile peace has held since, though Trump has warned of potential tariffs against other countries, including India, over their energy imports from Russia.
Rare Earths & Semiconductors at the Heart of Negotiations
The trade talks are heavily influenced by the strategic importance of certain goods.
China maintains near-monopoly control over rare earths, while the US possesses advanced semiconductor technology that Beijing seeks.
US has restricted sales of high-end chips to China from companies such as Nvidia, but has proposed a compromise.
Under the plan, US firms could sell specific versions of their semiconductors to China, paying the US government 15 per cent of the profits from these sales.
The extension also comes as the US President prepares for a high-stakes summit with Russian President Vladimir Putin in Alaska on Friday, aimed at discussing a resolution to the Ukraine conflict.
His earlier deadline for imposing tariffs on all Russian energy buyers passed without action, indicating his focus on diplomatic talks.
The US trade deficit with China stood at $295 billion last year, according to the US Trade Representative. Trump has suggested Beijing could help reduce the gap by quadrupling its purchase of American soybeans.
For now, the 90-day reprieve offers both sides a chance to advance talks, but the underlying tensions remain unresolved.
Also Read: Canada PM Reaffirms Support For Ukraine Ahead Of Trump–Putin Summit
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