Trump Extends 90-Day Tariff Freeze on Chinese Goods to Facilitate Trade Talks

President Donald Trump signed an executive order extending the freeze on high U.S. tariffs against Chinese goods for an additional 90 days, preventing them from reverting to previously elevated levels ahead of a midnight deadline [1]. The decision follows recent trade talks between U.S. and Chinese negotiators in Stockholm, Sweden, and marks the latest in a series of pauses on tariff escalations since a similar agreement was reached in May in Geneva [1]. The extension provides both sides with more time to negotiate a broader trade agreement, with Treasury Secretary Scott Bessent indicating Trump was seeking additional time to finalize details of a potential tariff framework [2].

This move avoids a return to the peak tariff levels that had been in place during the height of the U.S.-China trade war earlier this year. The previous 90-day pause, agreed upon in May, was set to expire on August 13, but Trump’s decision to extend the freeze suggests a measured approach to managing the trade relationship [1]. While Trump has consistently signaled a protectionist trade policy, the latest extension indicates a strategy of delay and dialogue over immediate action [4].

The order also coincided with a separate but related decision: Trump announced that gold would no longer face tariffs, reversing a recent U.S. Customs and Border Protection ruling that had imposed a 39% tax on 1-kilogram and 100-ounce gold cast bars imported from Switzerland [1]. These bars are used in contracts traded on COMEX, the primary U.S. futures market for precious metals. Gold futures dropped 2.48% to $3,404.70 per ounce following the announcement, reflecting a mixed market reaction to the policy shift [1]. The Swiss Precious Metal Association had warned the earlier ruling could disrupt international gold trade flows.

Trump’s approach to trade policy has also extended to other major trading partners, including Mexico, where similar 90-day tariff pauses have been granted [3]. The administration has been in ongoing discussions with U.S. technology firms, including agreements involving companies like Nvidia and AMD, which could influence broader trade dynamics [4].

The extended tariff freeze adds another layer of uncertainty to the stock market, which has been fluctuating as investors weigh the potential economic impacts of Trump’s policies. While major indices have shown mixed performance, the broader economic implications of the trade truce remain unclear [5]. The U.S.-China trade relationship remains a central issue, with this latest extension signaling continued efforts to manage tensions without sudden policy shifts.

Sources:

[1] https://www.mitrade.com/au/insights/news/live-news/article-3-1030014-20250812

[2] https://www.msn.com/en-ca/money/topstories/a-pause-on-higher-tariffs-for-china-is-due-to-expire-tuesday-here-s-what-to-know/ar-AA1KioUO

[3] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-us-china-deadline-looming-court-ruling-on-trumps-authority-in-focus-200619980.html

[4] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-nvidia-and-amd-agree-to-unusual-revenue-deal-china-deadline-looms-200619131.html

[5] https://www.swissinfo.ch/eng/stock-rally-stalls-in-countdown-to-inflation-data%3A-markets-wrap/89811965