The U.S. and China have officially extended their tariff truce for an additional 90 days, according to multiple reports on Monday. This significant move comes just hours before the initial truce was set to expire, alleviating immediate concerns for U.S. businesses and investors regarding the future of trade with China.
The extension of this truce is crucial as it defers a pressing question for many stakeholders in the U.S.-China trade relationship. The original agreement effectively reduced U.S. tariffs on Chinese goods from a staggering 145% to a more manageable 30%. Additionally, this deal reinstated the flow of vital rare earth minerals from China, which are essential for various industries, including technology and manufacturing.
President Trump signed an executive order to extend the trade truce between the world’s two largest economies, a development first reported by CNBC on Monday. This extension was anticipated following a recent third round of trade talks held in Sweden late last month. These negotiations were part of a series of discussions that began with the truce deal in Geneva in May and continued with further agreements reached in London in June.
Following the discussions in Sweden, Chinese officials expressed confidence that the truce would be extended. Initially, U.S. officials cautioned that the Chinese may have been premature in their optimism, indicating that President Trump would need to make a final decision. However, recent statements from U.S. officials suggested that the extension was indeed on the horizon.
This is a developing story, and updates will continue to emerge as more information becomes available. For those following the intricacies of U.S.-China trade relations, this tariff truce extension represents a pivotal moment worth monitoring closely.
