Washington and Beijing have reportedly agreed to extend their current tariff pause for an additional 90 days, aiming to de-escalate trade tensions and facilitate further negotiations. The agreement, widely reported by major news outlets citing sources familiar with the matter, comes as senior economic officials from both nations are engaged in crucial trade talks in Stockholm, Sweden. This extension is anticipated to prevent the reintroduction of higher tariffs that were largely set to resume on August 12, 2025.
The current temporary tariff rates see US duties on Chinese goods at 30 percent, while China's retaliatory countermeasures stand at 10 percent. These rates represent a significant reduction from the peak triple-digit levels, which previously saw US tariffs on Chinese imports reach as high as 145 percent and Chinese tariffs on US goods at 125 percent. The initial pause and subsequent reductions were part of ongoing efforts to manage the protracted trade dispute that has characterized relations between the two economic powers.
This 90-day extension is viewed as a critical strategic move to prevent further escalation of the trade war and to cultivate a more stable environment for high-level diplomatic engagements. According to Reuters, such a prolonged truce could lay the essential groundwork for a potential meeting between US President Donald Trump and Chinese President Xi Jinping later in the year. Both nations are reportedly committed to refraining from implementing any new tariffs or taking additional measures that could intensify the trade dispute during this period.
The ongoing discussions in Stockholm mark the third round of high-level trade talks between the two countries this year, following earlier meetings in Geneva and London. These negotiations are expected to delve into a range of contentious issues, including the broader trade imbalance, intellectual property concerns, and specific tariffs such as those related to fentanyl. The South China Morning Post, citing sources on both sides, had reported on Sunday that the extension was widely expected as a key outcome of these talks.
Analysts suggest that the extension provides a crucial period of predictability for businesses and investors, who have navigated considerable uncertainty due to fluctuating trade policies. The continuation of the pause is largely viewed as a positive signal for sustained dialogue, mitigating the immediate risk of a renewed tariff escalation that could negatively impact global supply chains and economic growth. The progress from these talks will be closely monitored for indications of a more comprehensive and lasting resolution to the trade tensions.