Trump orders 90-day extension of trade truce with China
Former US President Donald Trump announced on Monday that he had signed an executive order extending the suspension of tariffs on Chinese imports for an additional 90 days, just hours before the temporary trade truce between the United States and China was set to expire.
Trump said on Truth Social, that he signed the executive order extending the suspension, noting that this step aims to give the two sides more time to reach a long-term trade agreement.
Washington and Beijing engaged in a fierce trade dispute this year, during which they imposed high tariffs of more than 100% on a number of traded goods, significantly disrupting trade between the two countries.
However, in May, the two sides reached a temporary truce that included tariff reductions, with the United States reducing its tariffs to 30% in exchange for China reducing its tariffs to 10%.
According to the interim agreement, these rates are expected to remain in effect until next November, unless a new agreement is reached before that date.
In parallel with Trump’s announcement, China’s official Xinhua news agency issued a joint statement following ongoing talks between the two sides in the Swedish capital, Stockholm, in which Beijing confirmed that it would also extend its commitments under the trade truce and continue to suspend a previous tariff increase for 90 days, starting August 12.
The statement added that the Chinese government will continue to take or maintain the necessary measures to suspend or remove non-tariff restrictions on US products, as agreed upon in the Geneva Joint Declaration.
The White House executive order noted that the United States continues to face a significant annual trade deficit with China, describing this deficit as a direct threat to national security and the US economy.
The order also confirmed the continuation of negotiations between Washington and Beijing to address the lack of reciprocity in trade relations, noting that China has begun taking concrete steps in response to US demands.
Asian markets welcomed the decision positively, with the Nikkei 225 index on the Tokyo Stock Exchange rising 2.8% during Tuesday’s trading, also supported by the trade agreement reached between Japan and the United States.
