US President Donald Trump extends pause on China tariffs for another 90 days

US President Donald Trump has extended his tariff truce on China for another 90 days, according to US media outlets.

Trump reportedly signed an executive order on Monday, just hours before the last agreement between the world’s two biggest economies was due to expire, delaying the implementation of his sweeping tariffs by the same duration they were initially paused for.

The previous agreement was set to expire just past midnight on Tuesday. The new order will prevent tariffs on Chinese goods entering the United States from shooting up to 145%.

Earlier in the day, Beijing expressed its hope that Washington would seek “positive trade outcomes” on Monday, on the final day of their 90-day détente, which was reached between the two countries in May.

“We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the basis of equality, respect and mutual benefit,” a foreign ministry spokesman, Lin Jian, said in a statement.

Trump however added to the uncertainty, saying “we’ll see what happens” when asked about the his deadline for Beijing.

Trump did however offer a glimpse of optimism that his tariffs may not come into effect as he stated that “China has been dealing quite nicely”.  He also praised his Chinese counterpart Xi Jinping, noting that their relationship is “very good”.

Last month, Chinese and US officials met in Stockholm to hold another round of trade deal negotiations. Following the meetings, officials said they expected the tariff truce to be extended.

US Treasury Secretary Scott Bessent said last week that the US had “the makings” of a deal with China, but that negotiations were still needed to finetune the framework and agree on the details.

The US-China trade deal could have catastrophic economic consequences for the entire world. The US has threatened to tariff Chinese products to the tune of 245%. China has retaliated with its own set of tariffs, which it set preliminarily at 125%.

The heated tariff battle between the two powers have rattled global stock markets and increased fears that a global trade war could erupt.

The two nations – who between them had a combined GDP of almost $50 billion (€43 billion) in 2024 – will continue to engage in talks over the coming 90 days.

US media says White House officials familiar with the matter say they’re optimistic a deal can be struck before the extension’s expiration.