China-US Tariff Agreement: Another 90-Day Truce

White House officials revealed that President Trump signed an executive order on Monday to extend the China-US tariff "truce period" by another 90 days. This move avoids, before the final deadline, US tariffs on Chinese goods surging to as high as 145%, while China would also raise tariffs on US goods to 125%, effectively creating a trade embargo. China also issued a statement, stating that it would continue to amend the tax committee announcement regarding ad valorem tariffs on US goods, and would again suspend the 24% tariff for another 90 days starting from Tuesday, while retaining the remaining 10% tariff on these goods. In accordance with the non-tariff measures stipulated in the Geneva Joint Statement, China would implement necessary tariffs as non-negotiated measures against the US.

The full text of Trump’s executive order has not been released, and it is still unclear whether the order contains any other modifications to US trade policy.

The original truce period was set to expire at 12:01 a.m. US Eastern Time on Tuesday (12:01 p.m. Malaysia Time). After the order takes effect, the US tariffs on imported Chinese goods will remain at the current level of about 30%, including the previously imposed 20% tariff relating to fentanyl measures. China had also cooperated by lowering tariffs and reducing tariffs on US goods to 10%.

The day prior, Trump had publicly demanded that Beijing increase its purchase of US soybeans by four times, but when asked whether the truce period would be extended, he only replied “Let’s see what happens”, also describing his relationship with Chinese President Xi Jinping as “very good”.

Former White House senior trade official Anne Shaw remarked that Trump often makes decisions at the last minute: “There wouldn’t be Trump-style negotiations without this kind of tension.” She indicated that the extension of the truce could allow more time to reach a framework agreement in the fall. Former US trade official Ryan Majerus also believed the decision would help de-escalate tensions, giving both sides more time to attempt to resolve some longstanding trade concerns.

However, Washington also demanded that Beijing stop purchasing Russian oil, and Trump even threatened that if China continues, “secondary tariffs” would be imposed.

Chinese Side Issues Statement: Announces 24% Tariff Suspension for 90 Days

On Tuesday, China’s Ministry of Commerce issued a statement indicating that China and the US recalled the May 12, 2025, Geneva Joint Economic and Trade Statement, and took into account the bilateral discussions in London (June 9-10, 2025) and Stockholm (July 28-29, 2025). Under the promises made in the Geneva Joint Statement, both parties agreed to take the following measures before August 12:

First, the US will continue to amend the ad valorem tariffs on Chinese goods (including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region), as specified in Executive Order No. 14257 on April 2, 2025, and will, from August 12, 2025, again suspend the implementation of the 24% tariff for 90 days, while retaining the remaining 10% tariff as stipulated by the Executive Order.

Second, China will continue to amend the ad valorem tariffs on US goods as specified in Tax Committee Notice No. 4 of 2025. Beginning August 12, 2025, China will again suspend the 24% tariff for 90 days, while retaining the remaining 10% on these goods; and in accordance with the non-tariff measures in the Geneva Joint Statement, will take unagreed measures as necessary towards the US by imposing tariffs.

The China-US Stockholm Joint Economic and Trade Statement noted that China will take or maintain necessary measures to suspend or cancel non-tariff countermeasures against the US. On the 12th, a spokesperson for China’s Ministry of Commerce, in response to related questions, confirmed that for the 17 US entities on the Unreliable Entity List and 28 entities on the Export Control List, the relevant measures will be suspended.

The spokesperson explained that the Unreliable Entity List work mechanism placed 17 US entities on the list on April 4th and 9th this year, prohibiting those companies from import and export activities related to China as well as new investments in China. Starting Tuesday, the suspension of the measures announced April 4th will continue for 90 days; the April 9th measures will be stopped. In accordance with the Unreliable Entity List regulations, domestic companies may apply for transactions with these entities, and the work mechanism will review and approve qualified applications in accordance with the law.

As for the 28 US entities placed on the Export Control List on April 4th and 9th, prohibiting the export of dual-use items to them, the 16 entities designated on April 4th will continue to have related measures suspended for 90 days starting Tuesday; the 12 entities designated on April 9th will have related measures stopped. Export operators who need to export dual-use items to these entities must apply as required, and approvals will be granted to those who meet the regulations after review.