U.S. Extends Tariff Freeze with China for 90 Days to Ease Holiday Trade Pressures

On August 11, U.S. President Donald Trump signed an executive order extending a temporary tariff freeze with China by an additional 90 days, in a move aimed at preventing a sharp escalation in trade tensions as American retailers gear up for the year-end shopping season.

The agreement—originally set to expire at 12:01 a.m. EDT on August 12 (11:01 a.m. Hanoi time)—will now be extended through mid-November, keeping tariffs at their current levels: 30% on Chinese imports into the U.S. and 10% on American goods entering China. Without this extension, tariffs would have surged to 145% and 125%, respectively.

De-escalation Signals and Hopes for Trump-Xi Meeting in the Fall

Following the decision, President Trump emphasized that he maintains a “good relationship” with Chinese President Xi Jinping, adding that he will “wait and see what happens”—hinting at a potential high-level meeting in the fall.

Analysts see this move, along with other recent signs of reduced trade tensions, as laying the groundwork for a possible Trump-Xi summit in the coming months.

Trade Truce Rooted in European Negotiations

The original tariff truce was first agreed upon in May, following negotiations in Geneva, Switzerland, and was reaffirmed during follow-up talks in Stockholm, Sweden, in late July.

U.S. Treasury Secretary Scott Bessent had repeatedly warned that the triple-digit tariff rates imposed since the spring were “unsustainable”, likening them to a de facto trade embargo.

Before agreeing to the extension, Trump reportedly demanded further concessions from China—most notably, a fourfold increase in soybean purchases—though analysts remain skeptical about the feasibility of such a commitment.

U.S.-China Trade Deficit Narrows Sharply

According to the U.S. Department of Commerce, Chinese imports into the U.S. have declined significantly, pushing the bilateral trade deficit down to $9.5 billion in June—the lowest level since February 2004, and a 70% decrease year-over-year.

Meanwhile, Washington continues to exert geopolitical pressure, including threats of secondary tariffs to discourage China’s purchases of Russian oil, as part of a broader strategy to isolate Moscow economically.