Source: Channel News Asia
Date: 12th August 2025

Executive Order Delays Sharp Tariff Increases, Providing Breathing Room for Holiday Imports.

The United States has extended its tariff truce with China for another 90 days, following an executive order issued by the administration.

This decision prevents steep tariff hikes, with U.S. duties on Chinese goods rising to 145% and Chinese duties on U.S. goods climbing to 125%, a move that could have amounted to a near trade embargo. Instead, current tariff levels will remain at 30% for U.S. duties on Chinese imports and 10% for Chinese duties on U.S. imports until mid-November, allowing for uninterrupted seasonal imports ahead of the year-end holiday period.

The extension follows a series of negotiations and consultations between the two countries, including recent meetings in Europe, where officials recommended prolonging the deadline to allow more time for talks. The move is seen as part of a broader effort to create conditions for a potential high-level meeting later in the year, with both sides seeking to address long-standing trade concerns. U.S. officials have also been pressing China for increased agricultural purchases and other concessions during the pause.

By maintaining the current tariff structure, both sides have reduced immediate trade tensions, with the hope of progressing toward a more comprehensive agreement. The truce comes after months of declining U.S. trade deficits with China, as import patterns shifted in anticipation of higher tariffs earlier this year.

However, the negotiations remain complex, with unresolved issues such as export controls, industrial capacity, and geopolitical considerations, adding weight to the coming months of discussions.