China Trade Truce Extended by 90 Days
After Donald Trump announced extension of the tariff suspension on Beijing, China too published said that it would also extend its side of the truce.
Chennai: The US has extended the tariff suspension for China for another 90 days after the expiry of the 90-day period on Tuesday. Unlike India, China has not been threatened with additional tariffs for buying Russian oil.
“I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days. All other elements of the Agreement will remain the same,” US President Donald Trump said in Truth Social.
In the executive order, the US said that China is taking significant steps toward remedying non-reciprocal trade arrangements and addressing the concerns of the United States relating to economic and national security matters. “Based on this additional information and recommendations from various senior officials, among other things, I have determined that it is necessary and appropriate to continue the suspension effectuated by Executive Order 14298 until 12:01 a.m. eastern standard time on November 10, 2025,” it said.
After Donald Trump announced extension of the tariff suspension on Beijing, China too published said that it would also extend its side of the truce.
Neither Trump nor the Executive Order mentioned Chinese purchase of Russian oil. China, the largest buyer of Russian oil, bought $158.7 billion valued Russian oil since January 2023, as per the data of Centre for Research of Energy and Clean Air while India stood second with $119.3 billion of crude oil.
India has been singled out in the long list of countries that have been buying Russian crude oil during the war with Ukraine. Though Trump had mentioned about secondary sanctions on other countries, the extension of the tariff deadline without a mention of oil tariff looks like the US is reluctant to penalise China as it did with India.
“Washington has never objected to China, the largest buyer of Russian oil, but treats India’s smaller imports as a problem. Unable to confront China, it found a softer target in India to impress its vote bank,” said Ajay Srivastava, founder, GTRI.
China has the advantage of having rare earth minerals US needs most and hence the US has eased its stand towards China, said Sanjay K Jain, chair of ICC National Textiles Committee.
“It won’t risk angering Beijing, which holds leverage through critical minerals vital to US defence, auto, semiconductor and electronics industries. Washington has even allowed NVIDIA and other firms to keep supplying sensitive semiconductor technology to China.
Under the current terms, US goods face 10 per cent tariffs in China, while Chinese goods pay 30 per cent in the US. This includes a 20 per cent fentanyl-related penalty that could be lifted whenever Beijing proves it plays no role in supplying the drug, added GTRI.