U.S.-China Trade Truce: Navigating the Tariff Tightrope

The United States and China have agreed to extend their tariff truce by 90 days, delaying the implementation of steep duties on Chinese goods as U.S. retailers gear up for the holiday season. President Trump announced he signed an executive order to postpone the imposition of higher tariffs until November 10.

In response, China's Commerce Ministry declared it would take necessary measures to suspend non-tariff barriers. Meanwhile, the U.S. continues to press China for increased purchases of American soybeans, amid broader discussions focused on resolving trade reciprocity and security concerns.

The extension prevents an escalation that could have seen U.S. tariffs on Chinese goods reach 145%, while Chinese tariffs on U.S. goods could have hit 125%. This development buys time for ongoing negotiations, with hopes for a Xi-Trump meeting to finalize a trade deal later this year.

(With inputs from agencies.)