The US and China have extended their trade truce until 10 November, just hours before the world’s two biggest economies were set to hike tariffs on each other.The higher tariffs will be suspended for another 90 days, Beijing and Washington said in a joint statement.Talks last month ended with both sides calling the discussions “constructive”. China’s top negotiator said at the time that the two countries would push to preserve the truce, while US officials said they were waiting for final sign-off from President Donald Trump.On Monday, Trump signed an executive order to extend the truce.Under the agreement, the US will hold its tariffs on Chinese imports at 30%, while China will keep a 10% tariff on American goods.Washington had threatened tariffs as high as 145% on Chinese goods at one point, with Beijing hitting back with 125% duties on US shipments. The rates for both countries were since scaled down after a round of trade talks held in Geneva in May.The latest truce extension will give more time for negotiations about “remedying trade imbalances” and “unfair trade practices”, the White House said. It cited a trade deficit of nearly $300bn (£223bn) with China in 2024 – the largest among any of its trading partner.The talks will also aim to increase access for US exporters to China and address national security and economic issues, the statement said.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.”In the statement, China also called on the US to lift its “unreasonable” trade restrictions, work together to benefit companies on both sides and maintain the stability of global semiconductor production.A return of higher duties would have risked further trade turmoil and uncertainty amid worries about the effect of tariffs on prices and the economy.But one US business owner told the BBC that the extension just means further uncertainty.” …
