New Delhi, Aug 12: The United States and China have agreed to extend their trade truce until 10 November, just hours before a fresh round of tariff increases was set to take effect, reports BBC and international media.
Both sides announced that higher duties on each other’s goods, imposed earlier this year, will remain suspended for another 90 days. The extension is intended to allow more time for negotiations on trade imbalances, market access, and national security concerns. Talks will also address US restrictions on high-tech exports to China and Beijing’s access to critical minerals.
Trade tensions between the two countries escalated sharply in April after Washington introduced sweeping new tariffs, prompting Beijing to retaliate. While some measures were rolled back in May, significant duties remain in place, currently 30% on Chinese goods entering the US and 10% on US goods entering China.
Recent discussions have touched on issues including Chinese purchases of US agricultural products, access to rare earths, and the potential separation of TikTok from its Chinese owner ByteDance.
The US has also eased some export curbs on advanced chips, allowing companies like AMD and Nvidia to resume limited sales to Chinese firms under revenue-sharing conditions.
BBC reported that despite the truce, trade flows remain depressed. US imports of Chinese goods in June were down nearly 50% from a year earlier, with total imports in the first half of 2025 falling 15% year-on-year. American exports to China dropped about 20% over the same period.
