U.S.-China Extend 90-Day Tariff Truce Delay New Tariffs to November Amid Global Slowdown

The U.S. and China are poised to extend their ongoing tariff truce by 90 days, according to reports citing sources familiar with the negotiations. The extension, set to be announced during talks in Stockholm between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, would delay new tariffs until late November. This pause builds on previous discussions in Geneva and London, aimed at stabilizing trade relations amid a global economic slowdown. The agreement reflects both nations’ strategic interest in avoiding immediate escalation, though analysts caution that unresolved structural issues remain [1][3].

The proposed 90-day truce would prevent aggressive actions such as imposing additional tariffs, providing temporary relief for industries disrupted by the trade war. Since 2018, the two countries have levied tariffs on over $700 billion in goods, reshaping global supply chains and pressuring multinational corporations. The pause offers businesses time to adjust while allowing negotiators to address broader issues like intellectual property protections and digital trade. However, the truce is not a permanent resolution but a tactical pause, dependent on both sides’ political will to advance talks [2].

A complicating factor in the negotiations is the U.S. focus on curbing fentanyl production, a synthetic opioid linked to overdose deaths. Chinese officials have reportedly pushed to remove tariffs on chemicals used in fentanyl production, arguing the measures hinder collaborative efforts to combat drug trafficking. While the U.S. administration has tied these tariffs to domestic policy goals, analysts note the Biden team may resist changes amid election-year sensitivities. This issue highlights the challenge of balancing trade diplomacy with non-economic priorities [3].

The timing of the Stockholm talks is critical. The U.S. faces an election cycle where trade policies are politically charged, while China’s slowing economy may heighten its need for stable exports. Despite these pressures, neither side has publicly confirmed the truce’s extension, with the White House remaining silent on the matter. The absence of breakthroughs on core disputes underscores the limitations of the current framework. Without progress on structural reforms, the truce risks deferring, rather than resolving, deeper tensions [1][2].

The extension aligns with broader efforts to stabilize the global economy, particularly as markets grapple with inflation and geopolitical uncertainties. However, experts warn that the 90-day window may not suffice to address entrenched disagreements. While the pause offers short-term stability, its success hinges on both parties’ ability to shift from crisis management to long-term cooperation. The outcome in Stockholm could determine whether the world’s two largest economies move toward de-escalation or face renewed conflict [2][3].

Sources:

[1] [Reuters] [https://www.reuters.com/world/china/us-china-resume-tariff-talks-effort-extend-truce-2025-07-27/]

[2] [Fortune] [https://fortune.com/2025/07/27/us-china-trade-truce-extension-90-days-trump-tariffs/]

[3] [Mitrade] [https://www.mitrade.com/insights/news/live-news/article-3-990264-20250728]