U.S. President Donald Trump has extended the tariff suspension imposed on China for 90 days. In response, China has also announced a halt to its tariff increases. This decision may ease tensions between the two countries and have a positive impact on the global economy.
Tariff War: On August 11, 2025, U.S. President Donald Trump decided to extend the tariff suspension imposed on China for another 90 days. He signed an executive order in this regard. Immediately after, China also announced a 90-day halt to its tariff hikes. This step may temporarily calm the ongoing tariff war between the U.S. and China, which is expected to bring stability to global markets.
Major Decision on Tariff Suspension
The United States has announced the extension of the tariff suspension imposed on China for another 90 days. The Trump administration took this decision just before the deadline of August 12, 2025, thus averting a potential tariff increase. President Donald Trump clarified that all other terms of the existing agreement would remain the same and that this extension is solely to maintain trade stability.
The Beginning of the Tariff War
In early 2025, trade tensions between the U.S. and China reached a fever pitch when both countries imposed hefty import duties (tariffs) on each other's products. Tariff rates in several commodity categories reached triple digits, which not only rapidly increased the cost of trade but also severely disrupted the global supply chain. This situation weakened investor confidence in the international market and caused significant losses to many industries.
Temporary Relief in May 2025
After lengthy negotiations, the two countries reached a temporary agreement in May 2025. It was decided that the tariff suspension would remain in effect until midnight on August 12, 2025, providing relief to companies and consumers. According to the agreement, tariff rates could be increased again if a new solution was not found by the stipulated time.
China's Response
Following the latest U.S. decision, China also took reciprocal steps by announcing a 90-day halt to its tariff increases, maintaining the existing 10% import duty. China's official Xinhua News Agency reported that this decision was taken after high-level U.S.-China talks in Stockholm.
Joint Statement and Promise
Both countries issued a joint statement confirming the extension of this trade truce. Additionally, China promised to remove or suspend all non-tariff countermeasures against the U.S. under the Geneva Joint Declaration, strengthening the possibility of a resolution in the coming months.
