Trump extends tariff deadline for China by three months

The United States and China on Monday agreed to hold their current tariff rates on each other for 90 days as negotiations continued. The world’s two largest economies have participated in several rounds of talks aimed at addressing economic and national security issues, according to Trump’s executive order on Monday. China will maintain its 10% tariff on American goods, and the United States will maintain its 30% tariff on Chinese goods ahead of the new Nov. 10 deadline to iron out trade disputes.

What led to this point? Days after taking office, President Donald Trump instituted new tariffs against China, which prompted a swift retaliation from Beijing. The two countries escalated tariffs on each other’s goods multiple times this spring before agreeing in May to slash the fees for 90 days to promote open dialogue and stabilize the global economy. Chinese and American officials reached an initial agreement in June that would allow Chinese students to attend U.S. colleges and universities.

Dig deeper: Read Christina Grube’s report about Trump’s threat to institute more tariffs on countries supporting anti-American policies.