Trump Signs Order for 90-Day Extension on Harshest China Tariffs – Big Trade Relief Amid Talks
There was another big news in the international trade landscape when President Donald Trump signed an executive order on Monday giving a 90-day extension to additional tariffs on China. The decision halts tariffs that were scheduled to be imposed from Tuesday. The move means the two countries will continue negotiations on their trade deal, and now a new deadline has been fixed — November 10. This will avoid the harshest taxes for now.
President Trump confirmed the signing of the order on social media at around 8 p.m. ET. Interestingly, at the same time, China also announced a tariff pause extension through Xinhua News Agency. This is a clear signal that the negotiation process is still alive from both sides and some progress is being made.
Trump Signs Order for 90-Day Extension on Harshest China Tariffs and Maintains Current Rates
After this extension, the headline tariff rates decided in May — 30% on Chinese imports and 10% on American goods — will continue for now. This temporarily avoids snap-back tariffs, which could reach triple-digit levels. But sector-specific tariffs such as steel and some medical supplies still have higher effective tariff rates, which complicates the trade dynamics.
This time Trump is not only focused on China but also on the Russia-Ukraine war. As per recent developments, he has also imposed a 25% tariff on India’s imports as India has continued to consume Russian oil. This clearly shows that the US is aligning its trade policies with geopolitical situations.
Trump Signs Order for 90-Day Extension on Harshest China Tariffs May Lead to Trump-Xi Meeting
This new tariff pause creates another interesting possibility — a high-profile meeting between Trump and Xi Jinping. Both sides are exploring the concept that a face-to-face meeting could be arranged during the Asia-Pacific Economic Cooperation summit, which is scheduled to be held in South Korea at the end of October.
In recent months, the trade teams of both countries have held three important meetings — in Geneva in May, London in June, and Stockholm in July. There has certainly been some progress in these meetings, but tensions still exist. China’s Vice Premier for Economic Policy, He Lifeng, has been representing his country in each meeting. After the latest round, Chinese trade negotiator Li Chenggang said there have been “candid exchanges over their economic concerns” from both sides, which is a positive sign.
Trump Signs Order for 90-Day Extension on Harshest China Tariffs – Talks Focus on Tech and Trade
So far, the major focus of the talks has been on semiconductors. In particular, a plan to resume Nvidia’s (NVDA) AI chip exports to China has been discussed. In addition, China’s exports of rare earth minerals have been a critical discussion point, as these materials are essential for modern tech manufacturing.
A long list of unresolved issues still exists that must be addressed if the two nations want a sustainable trade deal. The involvement of the semiconductor industry makes it clear that the trade dispute is not just limited to tariff levels but also extends to technology access and innovation dominance.
Trump Signs Order for 90-Day Extension on Harshest China Tariffs and Strikes Chip Deal with Nvidia, AMD
Over the weekend, the Trump administration finalized a deal with Nvidia and AMD. Under this deal, these chipmakers will be able to sell some of their specific chips in the Chinese market, but the US will get a 15% cut on these sales. This could be a win-win situation where the US will get revenue and China will get partial access to critical tech supplies.
Such agreements provide short-term relief, but building long-term trust will still remain a big challenge. Tariff extensions and targeted deals only serve as a bridge until the broader agreement is finalized.
Why the Trump Signs Order for 90-Day Extension on Harshest China Tariffs Matters
This 90-day extension is a political and economic balancing act. While it provides short-term stability to global markets, it keeps a negotiating window open where both sides can discuss their core issues. If these negotiations are successful, they could have a direct impact on global supply chains, manufacturing costs, and tech accessibility.
This decision has another implication — it is an indicator for global trade investors that diplomatic channels are still open and the risk of a sudden escalation has been temporarily reduced. But it does not mean that the challenges are over. The US-China trade relationship is still fragile and a small policy shift this could also cause market volatility.
Disclaimer:
This article is for informational purpose only. The views and details given in it are based on publicly available news reports. This content does not intend to promote or oppose any political or economic position.
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