President Donald Trump signed an executive order Monday delaying the reimposition of higher tariffs on Chinese goods, just hours before a trade truce between the world’s two largest economies was set to expire.
The halt on steeper levies will be in place for another 90 days, according to reports from U.S. media outlets including The Wall Street Journal and CNBC.
The extension provides a critical window for ongoing negotiations, which have been underway since a temporary de-escalation was agreed upon in May. The initial 90-day truce was set to end on Tuesday, and its expiration would have seen tariffs on Chinese imports spike to pre-truce levels.
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The decision comes after a year of escalating tit-for-tat tariffs that have roiled global markets and created uncertainty for businesses. While both sides had agreed to a temporary reduction in tariffs, a recent round of talks in Stockholm in July failed to produce a permanent resolution.
In a statement earlier on Monday, a Chinese foreign ministry spokesperson expressed hope for a positive outcome to the trade talks, urging the U.S. to work with China “on the basis of equality, respect and mutual benefit.”
The extension means that the current tariffs—30% on many U.S. imports from China and 10% on Chinese imports from the U.S.—will remain in place. The new deadline for a potential agreement is now set for early November, according to the Wall Street Journal, and will likely coincide with key international summits.
The White House has not yet released the full text of the new executive order.
