US and China Agree to Extend Tariff Pause Through November

On August 12, 2025, the United States and China agreed to extend their tariff truce by 90 days, sidestepping a sharp escalation in trade duties that originally threatened to spike to as high as 145% on Chinese goods and 125% on American exports. The extension, now pushing the deadline to November 10, keeps existing tariff levels intact—30% for U.S. imports from China and 10% for Chinese imports from the U.S.—providing much-needed relief to retailers gearing up for the holiday season.

This move follows intense negotiations held in Geneva and Stockholm and was formalized via executive orders from both President Trump and China’s Commerce Ministry. Treasury Secretary Scott Bessent and other officials argued that maintaining those extreme tariff levels would have been economically untenable. Though Trump continues to press China for further concessions—such as a hefty increase in soybean purchases—many analysts remain unconvinced such demands will succeed.

While deeper structural disagreements remain unresolved, this latest extension sends a clear signal: both nations want to dampen tensions, for now, and give trade more breathing room. Markets reacted favorably, prompting a sense of cautious optimism as talks are expected to resume later in the fall.