US-China Tariff Truce Extended To November, Traders See Relief As Trump Warns Over Russian Oil

<p>The United States and China have agreed to prolong their tariff truce for another 90 days, preventing a sharp escalation in import duties that could have hit triple digits. The move comes as American retailers gear up to stock shelves for the crucial year-end holiday season.</p>
<p>US President Donald Trump confirmed via his Truth Social account that he signed an executive order delaying the planned tariff increases until November 10 at 12:01 AM EST. All other provisions of the truce remain unchanged, reported Reuters.</p>
<p>China&rsquo;s Commerce Ministry issued a matching statement early Tuesday, also deferring additional tariffs and postponing plans to place certain US firms on trade and investment restriction lists announced in April.</p>
<p>&ldquo;The US continues talks with the PRC to address trade imbalances and national security concerns,&rdquo; Trump&rsquo;s order stated, noting that China has taken &ldquo;significant steps&rdquo; toward improving non-reciprocal trade arrangements.</p>
<h2><strong>Trump Says ‘Good’ Relationship With Xi Jinping</strong></h2>
<p>The original truce was set to expire on Tuesday, but the extension ensures importers can bring in electronics, apparel, and toys at lower rates during the seasonal surge. Without the agreement, US tariffs on Chinese goods would have jumped to 145 per cent, while China&rsquo;s duties on US imports were set to climb to 125 per cent&mdash;effectively freezing bilateral trade. Current rates remain at 30 per cent for Chinese imports and 10 per cent for US goods entering China.</p>
<p>Trump described his relationship with Chinese President Xi Jinping as &ldquo;good&rdquo; and hinted at a possible meeting later this year if a broader trade deal is reached.</p>
<p>Beijing framed the extension as a step to implement the &ldquo;important consensus&rdquo; from a June 5 call between the two leaders, saying it would bring stability to the global economy.</p>
<p>Trade experts see the move as part of ongoing de-escalation efforts. Wendy Cutler of the Asia Society Policy Institute called it &ldquo;positive news,&rdquo; suggesting it could pave the way for a Xi-Trump summit in the fall.</p>
<p>The 90-day pause follows a May agreement in Geneva and late-July talks in Stockholm, where negotiators recommended extending the deadline. Trump reportedly sought last-minute concessions from China, including increased soybean purchases, though he dropped the demand in Monday&rsquo;s announcement.</p>
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<h2><strong>Trump Links Tariff Talks to Russia Oil Issue</strong></h2>
<p>Trump also reiterated US pressure on Beijing to stop importing Russian oil, warning that failure to comply could trigger secondary tariffs. The issue has become a new flashpoint in trade discussions, with Washington seeking to align its China policy with broader geopolitical objectives.</p>
<p>Former US trade officials say the truce buys time to address long-standing disputes, from export controls to industrial overcapacity. Meanwhile, US Commerce Department data shows the trade deficit with China fell by roughly a third in June to $9.5 billion&mdash;its smallest since February 2004&mdash;marking five straight months of declines.</p>