August 13, 2025

In a dramatic last-minute move, US President Donald Trump signed an executive order that extends the tariff truce with China by another 90 days, a White House official announced on Monday. This order came just before US tariffs on Chinese products were meant to jump to triple-digit rates. The tariff truce, which was about to expire Tuesday at 00.01 ET, stops US tariffs on Chinese imports from soaring up to a whopping 145%, and blocks Chinese tariffs on American goods from spiking to 125%. These extreme rates would have nearly shut down trade between the two giant economies. Just a day earlier, President Trump had been noncommittal when reporters asked if he would push back the deadline for these tariff hikes. At the same time, he encouraged China to increase its purchases of US soybeans by four times. He said, "We'll see what happens." Trump added warmly about the relationship with China, "They've been dealing quite nicely. The relationship is very good with President Xi and myself." This move buys time for both sides to continue discussions and avoid the painful effects of a trade war explosion. For now, the trade war smoke has eased off—but the world is watching closely to see what happens next.

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Tags: Donald trump, China tariffs, Trade war, Soybean purchases, Tariff extension,