On August 11, 2025, US President Donald Trump announced a 90-day extension of the trade agreement with China, averting a potential serious conflict between the world’s two largest economies. In a statement on his Truth Social platform, Trump confirmed signing the extension, noting that all other terms of the agreement will remain unchanged.

The original deadline was set to expire at midnight on August 12, 2025. Had the deadline passed, the US could have increased tariffs on Chinese imports by 30%, and China might have retaliated by raising tariffs on US exports.

This extension provides both countries an opportunity to discuss their contentious issues peacefully. It could pave the way for a potential summit between Trump and Chinese President Xi Jinping by the end of the year. Companies engaged in US-China trade have welcomed this decision.

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Sean Stein, President of the US-China Business Council, stated that the extension is crucial for both governments to engage in comprehensive negotiations. He expressed hope that the agreement would ensure better market access for American companies in China and provide the certainty needed for long-term planning.

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Additionally, Stein emphasized the need for an agreement on fentanyl, which would facilitate the resumption of US agricultural and energy exports and prompt China to withdraw its retaliatory tariffs.