U.S. President Donald Trump has extended a trade truce with China for another 90 days, aiming to at least ease the tensioned showdown between the world’s two largest economies.
Trump announced on his Truth Social platform, which was signed by him on an executive order for the extension, and that all other parts of the agreement would remain the same. Meanwhile, Beijing, in a similar move, also announced an extension of a tariff pause.
If that happens, the US could raise tariffs on Chinese goods from a high of 30%, and Beijing could respond by raising retaliatory levies on US imports from China.
The pause comes as the two countries work out some of their differences, and set the stage for a summit later this year between Trump and Chinese President Xi Jinping, which has been welcomed by US companies doing negotiation in China.
Accordingly, the President of the US-China Business Council, Sean Stei, said that the aforementioned “extension” is “critical” to give the two governments time to negotiate a trade agreement that U.S. businesses hope will improve their market access to China, and provide the certainty a company needs to make medium and long term plans.
