Trump Extends China Tariff Truce for Another 90 Days

The extension may clear the path for Trump to visit China to meet with President Xi Jinping in late October

- Bloomberg

U.S. President Donald Trump extended a pause of sky-high tariffs on Chinese goods for another 90 days, stabilizing trade ties between the world's two largest economies.

Trump signed an order extending the truce, according to a person familiar with the matter. The pact, which saw the U.S. and China agree to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies, was due to expire Tuesday.

Negotiators from both sides reached a preliminary agreement to keep the arrangement last month in Sweden, and the president's advisers had expressed optimism he would approve it.

The White House did not immediately respond to a request for comment. Trump, speaking to reporters earlier Monday, demurred when asked if he would extend the deal. CNBC reported earlier on the signing.

The text of the order wasn't immediately available, and it was unclear if it included any other changes to U.S. trade policy.

The extension will ease worries of a renewed tariff war that threatens to choke off trade between the U.S. and China. An escalation between Washington and Beijing earlier this year shook global financial markets.

It will also give the countries more time to discuss other unresolved issues such as duties tied to fentanyl trafficking that Trump has levied on Beijing, American concerns about Chinese purchases of sanctioned Russian and Iranian oil, and disagreements around U.S. business operations in China.