US and China extend trade truce for 90 days to avoid tariff war

The United States and China have agreed to extend the trade truce for another 90 days to avoid a sharp increase in mutual duties, which could effectively halt trade between the world's two largest economies. About writes Reuters.

President of the United States Donald Trump signed a decree to postpone the tariff increase until November 10.

At the same time, the Ministry of Commerce of China announced a similar pause in the introduction of additional restrictions on American companies.

The decision preserves the current duties: 30% on Chinese goods imported into the US and 10% on US goods in China.

Without the ceasefire, the rates could have risen to 145% and 125%, respectively.

The extension gives time for negotiations and will allow US retailers to bring in goods before the Christmas season at lower duty rates.

Both sides said the move would contribute to global economic stability.

Analysts believe that this decision paves the way for a possible meeting between Trump and the Chinese president Xi Jinping already in the fall, if the parties come closer to a trade agreement.

Over the past five months, the US trade deficit with China has shrunk by 70%, and in June it reached its lowest level since 2004.

• The United States and China could not conclude a deal over Beijing's refusal to buy oil from Russia. China's Foreign Ministry said that the country "will always ensure its energy security in a manner consistent with national interests" and warned that "pressure and coercion will not work."
• on August 5, US President Donald Trump said that he "very close to a deal" with China to extend the trade truce.