President Trump signed an executive order Monday extending his tariff truce with China for another 90 days as his administration and Beijing attempt to reach a permanent agreement.
The truce, struck in June during talks between U.S. and Chinese officials, keeps U.S. tariffs on most Chinese goods at 55 percent in exchange for a commitment from Beijing to boost exports of rare earths to the U.S. China also agreed to cap its own tariffs on U.S. goods at 10 percent under the terms of the truce.
Trump’s decision to extend the truce came hours before it was set to expire Tuesday.
Without the truce, the U.S. would impose tariffs as high as 145 percent on Chinese goods. Trump agreed to scale back his tariffs on China after weeks of empty West Coast ports and stock market tumult stirred fears of a recession.