The U.S. and China on Monday extended a pause on higher tariffs for goods from each country until Nov. 10, just hours before a previous delay on duties was set to expire.
The pause means the U.S. will hold its levy on Chinese imports at 30%, while China will keep a 10% tariff on American products.
The extension prevents U.S. tariffs on Chinese goods from increasing up to 145% starting Tuesday, while Chinese tariffs on American goods were set to hit 125%.
President Donald Trump signed an executive order on Monday to extend the tariff deadline, saying China was taking steps to address U.S. concerns on “economic and national security matters.”
“The United States continues to have discussions with the People’s Republic of China (PRC) to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns,” the executive order said. “Through these discussions, the PRC continues to take significant steps toward remedying non-reciprocal trade arrangements and addressing the concerns of the United States relating to economic and national security matters.”
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Chinese officials said the extension gives time for both countries to continue to negotiate on key trade issues such as the trade deficit and lowering tariffs.
“The move serves the interests of both sides in achieving their respective development goals and will contribute to the development and stability of the world economy,” China’s Customs Tariff Commission of the State Council said in a statement, according to China Daily News.
The U.S. largest trade deficit is with China at $295.4 billion in 2024. The deficit has been a long-standing issue in the U.S.-China trade relationship and a key point of contention in trade negotiations.
China also reportedly agreed to ease some restrictions on exports of rare earth metals to the U.S., another top trade issue for both countries, according to NBC.
China was the third largest U.S. trading partner in June at $28.4 billion in two-way commerce. In 2024, China was the ranked third U.S. trade partner at $582 billion.
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