Trump Extends Trade Truce with China for 90 Days

• Trump has extended the trade truce with China for 90 days.
• Chinese exports are expected to rise by 5.9% in the first half of 2025.
• Trade negotiations are ongoing, despite high tariffs.

President Donald Trump announced the extension of the trade truce with China for another 90 days, allowing for the continuation of trade relations between the two largest economies in the world. This news was published on the Truth Social platform.

Earlier, the terms of the agreement were set to expire at 12:01 AM on Tuesday. If this had occurred, the U.S. could have raised tariffs on Chinese imports, which have already reached 30%, and China could have responded by increasing tariffs on American exports.

The extension provides the opportunity for both countries to resolve some of their differences, possibly paving the way for a summit between Trump and Chinese President Xi Jinping later this year.

President Sean Stein emphasized that the continuation of the agreement is "critically important" for the governments to have time for negotiations on a trade deal that would improve American companies' access to the Chinese market.

Trump continues to push for the conclusion of the agreement with China, as his administration has already implemented high tariffs on imports from other countries. Among other trading partners, the European Union and Japan have agreed to deals that allow the U.S. to impose high tariffs to prevent even worse consequences.

Trump's trade policy has transformed the U.S. from an open economy to a defensive fortress. The average tariff in the U.S. has increased by approximately 2.5% to 18.6% at the beginning of the year, which is the highest level since 1933.

However, China is also seeking ways to bypass American tariffs, supplying its goods to other markets. In the first half of 2025, China's exports are expected to rise by 5.9%, and the trade surplus is set to reach a record $586 billion.

Observers note that Trump is trying to maintain economic stability in the U.S., despite the trade tensions, while Xi Jinping may have a significant influence, including control over critical rare minerals.

Tags: USA/China/Politics/Economy