Overview

• President Trump signed an executive order on August 12, 2025, extending the trade truce with China for 90 days and postponing planned tariff hikes.
• The extension preserves U.S. tariffs at about 30% and China’s retaliatory levies at around 10%, along with recent concessions on rare-earth minerals and export controls.
• U.S. businesses and the U.S.-China Business Council praised the pause for providing certainty and preventing further supply chain disruptions.
• Analysts warn that core disputes over intellectual property, subsidies and the trade deficit remain unaddressed and could limit progress to narrow sector deals.
• The temporary ceasefire could pave the way for a Trump-Xi summit as negotiators continue discussions toward a broader trade agreement.