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 détente was set to expire. This decision prevents the US tariffs on Chinese goods from rising to 145%, and Chinese tariffs on US imports from increasing to 125%, levels that would have effectively led to a trade ban between the world’s two largest economies. A White House official stated that the extension until mid-November will provide extra time for negotiations and accommodate 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 on Sunday to quadruple its purchases of US soybeans, though it is unclear if China has responded.

US Treasury Secretary Steven Mnuchin expressed optimism about reaching an agreement with China, while Trump mentioned the possibility of meeting Chinese President Xi Jinping before the end of the year if progress is made in talks. This development follows talks held in May and July without reaching a final agreement to end the ongoing trade dispute.