On August 12, US President Donald Trump signed an executive order extending the trade truce with China for an additional 90 days, just hours before the current truce was set to expire. This decision prevents US tariffs on Chinese goods from rising to 145%, and Chinese tariffs on US imports from increasing to 125%, levels that would have effectively resulted in a trade ban between the world’s two largest economies. A White House official stated that the extension until mid-November provides extra time for negotiations and accommodates the seasonal increase in imports ahead of the Christmas season. Currently, US imports from China are subject to a total tariff of 30%, while China has reduced its tariffs on US imports to 10%. President Trump urged Beijing to quadruple its purchases of US soybeans, though it is unclear if China has responded.

US Treasury Secretary Scott Bessent expressed optimism about reaching an agreement, and Trump mentioned the possibility of meeting Chinese President Xi Jinping before the end of the year if progress is made. This development follows talks between the two sides in May and July without a final agreement to end the ongoing trade dispute.