PRESIDENT Donald Trump extended a trade truce with China for another 90 days on Monday, at least delaying once again a dangerous showdown between the world’s two biggest economies. Trump posted on hisTruth Social platform that he signed the executive order for the extension, and that “all other elements of the Agreement will remain the same.” Beijing at the same time also announced the extension of the tariff pause, according to the Ministry of Commerce. The previous deadline was set to expire at 12:01 am Tuesday.

 

Had that happened the US could have ratcheted up taxes on Chinese imports from an already high 30 per cent, and Beijing could have responded by raising retaliatory levies on US exports to China. The pause buys time for the two countries to work out some of their differences, perhaps clearing the way for a summit later this year between Trump and Chinese President Xi Jinping, and it has been welcomed by the US companies doing business with China. Sean Stein, President of the U S - C h i n a Business Council, said the extension is “critical” to give the two governments time to negotiate a trade agreement that US businesses hope would improve their market access in China and provide the certainty needed for companies to make medium- and long-term plans.

 

“Securing an agreement on fentanyl that leads to a reductioninUS tariffs anda rollback ofChina’s retaliatorymeasures is acutely needed to restart US agriculture and energy exports,” Stein said. China said on Tuesday it would extend relief to Americancompanieswhowere placedon an exportcontrollist and an unreliable entities list. After Trump initially announced tariffs in April, China restricted exports of dual-use goods to some American companies, while banning others from trading or investing in China. The Ministry of Commerce said it would stop those restrictions forsomecompanies,while giving others another 90-day extension.Reachingapactwith China remains unfinished business for Trump, who has already upended the global trading system by slapping double-digit taxes – tariffs – on almost everycountry on earth.