The United States and China have agreed to extend their tariff truce for another 90 days, preventing a new wave of steep duties on each other’s goods. The agreement comes as US retailers prepare to stock up for the busy end-of-year holiday season.

US President Donald Trump announced via Truth Social that he had signed an executive order postponing the planned tariff hikes until November 10 at 12:01 a.m. EST (0501 GMT), with all other truce terms unchanged. China’s Commerce Ministry issued a matching statement, confirming that additional tariffs and planned restrictions on targeted US firms would also be delayed for the same period.

According to the White House, the extension provides more time to negotiate remedies for trade imbalances and address “unfair trade practices.” Washington pointed to its nearly $300 billion trade deficit with China in 2024, the largest with any single trading partner as a key issue in talks. The negotiations will also seek to expand access for US exporters to Chinese markets while addressing national security and economic concerns.

A spokesperson for the Chinese embassy in Washington said:

“Win-win cooperation between China and the United States is the right path; suppression and containment will lead nowhere.”

China reiterated its demand for the US to lift “unreasonable” trade restrictions, stressing that both nations should work together to benefit companies on both sides and ensure stability in global semiconductor production.

While this truce extension averts immediate escalation, global markets remain watchful, as the trade dispute has far-reaching implications for supply chains, technology access, and geopolitical stability including for developing economies like Pakistan, which are indirectly affected by US-China trade tensions.