Just hours before a punishing tariff hike was set to kick in, United States President Donald Trump signed an executive order giving the US and China another 90 days to keep talking.
The move, confirmed to CNBC by a White House official, came before the pause was due to expire at midnight in Beijing. Without the extension, tariffs on Chinese goods would have shot back up to 145 percent — the same sky-high level they were in April — adding more fuel to an already tense trade relationship between the world’s two biggest economies.
Trump sounded upbeat earlier on Monday, telling reporters:
“We’ve been dealing very nicely with China… The relationship is very good with President Xi and myself.”
Beijing struck a similar tone, with Foreign Ministry spokesman Lin Jian urging Washington to follow the “important consensus” reached during a recent phone call between the two leaders and to work toward “positive outcomes on the basis of equality, respect, and mutual benefit.”
The tariff truce began in May after negotiators met in Geneva and agreed to temporarily roll back the triple-digit duties each side had been slapping on the other’s goods. But sticking points remain.
In June, US and Chinese officials met in London, where American envoys accused Beijing of violating parts of the pact. Another round of talks followed in Stockholm last month. Still, with the clock ticking, both sides appeared eager to avoid a sudden return to sky-high tariffs — though US Trade Envoy Jamieson Greer has stressed that Trump holds the “final call” on any extension.
For now, the 90-day reprieve keeps the door open for a deal — but the pressure is on to make real progress before the next deadline.
The latest news in your social feeds
Subscribe to our social media platforms to stay tuned