The United States and China have agreed to prolong their temporary halt on recent tariff hikes for a further 90 days, offering a brief reprieve for importers as high-level negotiations continue.
The extension, confirmed on 11 August by both Washington and Beijing, pushes the suspension deadline to 10 November 2025 and aims to give trade envoys more time to reach a lasting settlement.
Under the renewed arrangement, the US will maintain a suspension of 24 percentage points from the additional tariffs imposed on Chinese goods, leaving a residual 10% duty in place. These charges are applied alongside a 20% fentanyl-related levy, bringing the total tariff rate to 30% for most Chinese imports, including those from Hong Kong and Macau.
Beijing will mirror the move, keeping its own 24-point tariff suspension on US products while retaining a 10% baseline duty and honouring previous commitments to suspend non-tariff measures agreed earlier this year in Geneva.
The deal follows a series of intensive talks in London, Stockholm, and Geneva after tariff levels between the two nations soared earlier in 2025. US duties peaked at 145% on Chinese imports, prompting retaliation from Beijing with 125% tariffs on US goods. The escalation was rooted in Washington’s concerns over a US$295.4 billion trade deficit with China in 2024, the largest with any single trading partner. The first truce in May temporarily eased tensions, but it had been due to expire on 12 August.
For US importers, the extension provides short-term stability ahead of the holiday season, likely triggering renewed orders and potential front-loading of shipments to take advantage of the current tariff terms.
Industry analysts warn, however, that the truce may prove fragile. The US has recently imposed steep combined tariffs of 50% on most imports from India due to its purchases of Russian oil. An issue that could also impact China, a larger buyer of Russian crude, it risks sparking fresh tariff measures without warning.
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