On August 11, 2025, Trump signed an executive order extending the trade tariff pause with China for 90 days, until around November 10, 2025. This policy keeps the import tariff from China at 30%, maintains the US tariff on Chinese exports at 10%, and prevents a drastic increase in the tariff to 145%.
2. Strategic Objectives of Postponement
Protecting the US retail sector ahead of the year-end shopping season (Christmas season), to ensure prices and supplies remain stable.
Granting additional time for trade negotiations between Washington and Beijing. In previous months, delegations from both countries met in several cities—Geneva, London, Stockholm—to negotiate a long-term agreement.
3. Global Impact and Market Call
This extension announcement was positively received by the global financial markets: Asian stock indices, including Japan and Australia, recorded a rally; S&P 500 and Nasdaq futures also strengthened.
This attitude reflects the market's relief regarding the risks of escalating trade wars that could destroy supply chains and raise import costs.
4. Rhetoric and Trading Tactics
Trump reiterated that this agreement aims to address issues such as trade imbalances, market access, and national security.
He is also urged for China to increase purchases of US soybeans as one of the political conditions, although this demand has met with skepticism.
However, politicians and observers say that this delay reflects a tactical negotiation approach—prolonging the alliance, but with aggressive rhetoric—often referred to as "TACO trade" ( "Trump Always Chickens Out" ).
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Brief Summary
Question: Why did Trump postpone tariffs on China? Answer: Because he wants to protect the US economy and consumers ahead of the end of the year, allowing room for further negotiations with China, and preventing the escalation of tariffs that could cripple trade—while keeping the negotiation framework ongoing.
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1. Extension of the Rate Pause for 90 Days
On August 11, 2025, Trump signed an executive order extending the trade tariff pause with China for 90 days, until around November 10, 2025.
This policy keeps the import tariff from China at 30%, maintains the US tariff on Chinese exports at 10%, and prevents a drastic increase in the tariff to 145%.
2. Strategic Objectives of Postponement
Protecting the US retail sector ahead of the year-end shopping season (Christmas season), to ensure prices and supplies remain stable.
Granting additional time for trade negotiations between Washington and Beijing. In previous months, delegations from both countries met in several cities—Geneva, London, Stockholm—to negotiate a long-term agreement.
3. Global Impact and Market Call
This extension announcement was positively received by the global financial markets: Asian stock indices, including Japan and Australia, recorded a rally; S&P 500 and Nasdaq futures also strengthened.
This attitude reflects the market's relief regarding the risks of escalating trade wars that could destroy supply chains and raise import costs.
4. Rhetoric and Trading Tactics
Trump reiterated that this agreement aims to address issues such as trade imbalances, market access, and national security.
He is also urged for China to increase purchases of US soybeans as one of the political conditions, although this demand has met with skepticism.
However, politicians and observers say that this delay reflects a tactical negotiation approach—prolonging the alliance, but with aggressive rhetoric—often referred to as "TACO trade" ( "Trump Always Chickens Out" ).
---
Brief Summary
Question: Why did Trump postpone tariffs on China?
Answer: Because he wants to protect the US economy and consumers ahead of the end of the year, allowing room for further negotiations with China, and preventing the escalation of tariffs that could cripple trade—while keeping the negotiation framework ongoing.