US-China Trade Tariff Truce Extended to November 2025: What This Means for Global Trade

President Trump has extended the current US-China tariff truce by 90 days, pushing the expiration to November 10, 2025. This extension keeps tariffs capped at 30% for Chinese imports and 10% for US goods, avoiding a planned tariff spike that could have reached 145% on US duties and 125% for China’s retaliations. The move supports economic stability during the crucial holiday season and lays a foundation for further negotiation, possibly including a Trump–Xi summit later this year.

The trade war, initially sparked in 2018, escalated dramatically with the second Trump administration, leading to unprecedented tariffs on both sides. At one point, US tariffs on Chinese goods peaked at 145%, covering almost all imports, causing significant disruptions in supply chains and global markets. These tariffs included measures under several trade laws and targeted sectors like steel, aluminum, copper products, and technology components, aiming to boost domestic manufacturing and address trade imbalances.

Despite tensions, recent agreements have scaled back some tariffs and reopened trade flows, benefiting exporters and consumers on both sides. Analysts warn that the evolving tariff landscape still poses risks, especially to industries reliant on cross-border supply chains. The ongoing dialogue reflects a complex balance between protecting national interests and fostering global economic growth amid a competitive geopolitical backdrop.

How the US-China Tariff Truce Impacts the US Dollar

The extension of the US-China tariff truce has given the US dollar a stronger footing in global markets. By avoiding a sharp spike in tariffs, stability returned to trade flows, boosting investor confidence in the dollar as a safe-haven currency. This led to a noticeable appreciation in the US dollar index (DXY), reflecting optimism about reduced trade tensions and lower disruption risks for American businesses.

However, the dollar’s strength also reflects ongoing uncertainty, as tariffs remain elevated compared to pre-trade war levels, and talks could still break down. Investors keep a close eye on inflation data and Federal Reserve policies, which, combined with trade developments, influence dollar movements. In sum, the tariff truce supports a robust dollar short-term but with cautious market vigilance for future shifts.

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