US, China Prolong Trade Truce to Avert Tariff Hikes

The United States and China have agreed to extend a pause on planned tariff increases, averting a fresh surge in levies between the world’s two largest economies.

The agreement, announced on August 11, 2025, follows high-level discussions between officials in Washington and Beijing. The extension will last for 90 days, maintaining current tariffs while halting additional duties that were due to take effect.

According to U.S. and Chinese officials, the move is aimed at preventing a renewed escalation in trade tensions that have strained bilateral relations since 2018. At the time, both nations began imposing billions of dollars in tariffs on each other’s goods, disrupting supply chains and slowing global growth.

The pause also gives negotiators more time to address unresolved trade issues, including intellectual property protections, market access, and industrial subsidies. Bloomberg reported that the White House described the extension as a critical step to avoid economic harm, while NewsX noted it offers temporary relief to businesses and markets bracing for higher costs.

Analysts caution that while the truce provides short-term stability, uncertainty remains over whether a lasting settlement can be reached before the new deadline.