US and China Extend Trade Truce Until November 10 Amid Ongoing Disputes

Aug 2025 : The United States and China have agreed to extend their trade truce until November 10, narrowly avoiding a fresh round of tariff hikes that was set to take effect today. The decision, announced jointly by both governments, will keep current tariffs in place for another 90 days, allowing more time for negotiations on key economic and security issues.

Under the extension, US tariffs on Chinese imports will remain at 30%, while China will maintain a 10% duty on American exports. Planned increases to 145% on Chinese goods entering the US and 125% on US goods entering China have been put on hold.

The ongoing talks aim to address trade imbalances, market access, technology export restrictions, and national security concerns. Discussions also cover sensitive topics such as China’s purchase of Russian oil, access to rare earth minerals, and the potential restructuring of Chinese-owned TikTok.

Trade tensions flared earlier this year after Washington imposed sweeping new tariffs in April, prompting Beijing to retaliate. While some duties were rolled back in May, significant barriers remain. The US maintains a $300 billion trade deficit with China, its largest with any country in 2024.

Recent negotiations have led to partial easing of certain US export curbs, allowing chipmakers such as AMD and Nvidia to resume limited sales to Chinese firms under revenue-sharing conditions.

Despite the truce, trade volumes between the two economies remain depressed. In June, US imports of Chinese goods fell nearly 50% year-on-year, while American exports to China dropped about 20% in the first half of 2025.

Both sides have described the extension as a “window of opportunity” to reach a broader agreement, though officials caution that significant differences remain.

Team Maverick.