The United States and China have agreed to extend their current tariff truce by an additional 90 days, delaying a planned increase in duties and offering a temporary reprieve in the ongoing trade dispute between the world’s two largest economies.
The agreement, announced late Monday following high-level talks, will maintain existing tariffs at current levels while negotiators work to resolve longstanding disagreements over market access, intellectual property protection, and industrial subsidies.
US Trade Representative Katherine Tai said the extension reflected “constructive progress” in discussions but warned that significant differences remain. “We have an opportunity to achieve a more balanced and fair trading relationship, but we must see concrete commitments from China,” she told reporters in Washington.
Chinese Vice Commerce Minister Wang Shouwen echoed the sentiment, calling the move “a necessary step to create space for meaningful dialogue.” He added that Beijing was prepared to make “mutually beneficial adjustments” if Washington acted in good faith.
The truce averts a scheduled tariff hike on $200 billion worth of Chinese goods that was due to take effect next month. Analysts say the pause will ease pressure on global markets, which had been bracing for a new wave of trade-related disruptions.
Stock markets in both countries reacted positively to the news, with the Dow Jones Industrial Average rising more than 300 points in early trading, while Shanghai’s benchmark index closed up 1.5%.
Business groups welcomed the decision but urged negotiators to use the window to secure lasting reforms. “Another extension without substantive change will only prolong uncertainty,” said Craig Allen, president of the US-China Business Council.
Talks are expected to continue at both ministerial and working levels over the coming weeks, with officials aiming to reach a broader trade agreement before the new deadline expires.