Beijing: The United States and China have agreed to extend their existing tariff truce by 90 days, delaying a planned increase in duties that threatened to further strain economic ties between the world’s two largest economies. The extension, signed by US President Donald Trump through an executive order, pushes the next potential tariff escalation deadline to November 10, 2025.

Under the agreement, the current tariff rates of 30 percent on Chinese imports to the US and 10 percent on American exports to China will remain in place during the extension. Without the truce, tariffs could have surged to as high as 145 percent on Chinese goods and 125 percent on US goods, a move that experts say would have severely disrupted bilateral trade.

The decision provides crucial breathing room for both governments to continue negotiations, with hopes of reaching a broader trade agreement. Businesses, particularly US retailers preparing for the holiday season, have welcomed the move as it offers stability for inventory planning and supply chain management.

Sean Stein, president of the US-China Business Council, described the extension as critical for giving negotiators time to address market access issues and create a more predictable environment for global trade.

Analysts view the move as potentially paving the way for a meeting between President Trump and Chinese President Xi Jinping later this year. Financial markets responded positively to the news, with Japan’s Nikkei 225 index hitting record highs, crude oil prices stabilizing, and investor sentiment improving across Asia.

However, trade experts caution that key disputes, including disagreements over intellectual property rights, industrial policies, and economic reciprocity, remain unresolved. They warn that while the truce reduces immediate tensions, the broader US-China trade war is likely to continue unless both sides reach a comprehensive agreement.

The next three months are expected to be critical, as negotiators work to bridge the gap on longstanding trade and policy issues before the extended deadline expires.