U.S., China extend tariff pause another 90 days
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President Trump and China's President Xi Jinping in Beijing in 2017. Photo: Thomas Peter-Pool/Getty Images
The U.S. and China have extended their tariff truce for another 90 days, President Trump confirmed Monday.
Why it matters: The extension comes hours before the truce was set to expire. It pushes off a huge, open question for U.S. businesses and investors on the future of trade with China.
- The original deal lowered U.S. tariffs on Chinese goods to 30% from 145% and restarted the flow of crucial rare earth minerals out of China.
The latest: China's Commerce Ministry confirmed after the president's announcement that it would suspend additional tariffs on U.S. goods for 90 more days, per a joint statement with the Trump administration.
Catch up quick: Trump signed an executive order on Monday that extended the trade truce between the world's largest economies until Nov. 10.
- The extension was expected after U.S. and Chinese officials held a third round of trade talks in Sweden late last month.
- Those negotiations followed the truce deal in Geneva in May and then an agreement on further terms in London in June.
Context: After the Sweden talks, Chinese officials said the truce would be extended.
- U.S. officials initially said the ruling Chinese Communist Party had gotten ahead of itself and that Trump had to make a decision, before signaling in recent days that an extension was coming.
Go deeper: Trump admin claims Social Security, Medicare at risk if tariffs blocked
Editor's note: This article has been updated with the Chinese Commerce Ministry's announcement and comment from President Trump.
