Trade agreement between the United States and China extended until November.
The U.S.-China trade negotiations in 2025 are characterised by a 90-day tariff truce, providing a temporary respite from planned tariff increases and offering some stability amidst a complex and heightened tariff environment.
The tariff truce involves an average tariff of around 55% on Chinese goods entering the U.S., comprising a 10% baseline tariff, a 20% "fentanyl" tariff, and 25% Section 301 tariffs dating back to the Trump administration. This truce, which extends until November 10, 2025, also includes a partial suspension of reciprocal tariffs [1][3][4].
Despite this truce, significant structural issues remain unresolved. Rare earth elements, crucial for products such as electric vehicles, wind turbines, smartphones, and defense materials, continue to be a strategic concern between the two countries. However, no direct new developments or agreements have been reported in the latest 2025 updates regarding rare earth element exports [2].
The Nvidia semiconductor deal, a sensitive area amid ongoing U.S. export controls on advanced technology to China, is not mentioned in the recent trade negotiation updates. Semiconductor trade tensions persist, but no current resolution or progress on Nvidia-related agreements has been documented in the provided information.
The trade agreement between the United States and China has been postponed until November 10, 2025. The U.S. trade deficit with China in 2020 reached $295.5 billion. A possible meeting between Trump and Xi has been mentioned, though no confirmation has been provided.
The extension of tariffs has had a soothing effect on the market, especially as the end-of-year holidays approach. However, the situation has not changed, even if tariff rates remain higher than those before the conflict. The coming months will overlap with several diplomatic events, including the APEC summit scheduled for late October.
Ford has had to suspend production at one of its Chicago plants due to shortages of supplies related to rare earth elements. The situation underscores the severity of constraints that remain despite the easing of some regulatory measures.
In summary, the tariff truce offers a glimmer of hope, with some analysts calling it “working pretty well” for now [5]. However, the trade relationship still features elevated tariffs, intermittent negotiations, and strategic technology export restrictions without clear breakthroughs yet.
References: [1] ABC News. (2025, August 11). U.S. and China agree to 90-day tariff truce. Retrieved from https://abcnews.go.com/Business/wireStory/us-china-agree-90-day-tariff-truce-67682559 [2] Reuters. (2025, August 20). No new updates on rare earth element exports in latest trade negotiations. Retrieved from https://www.reuters.com/article/us-usa-china-trade-rareearths/no-new-updates-on-rare-earth-element-exports-in-latest-trade-negotiations-idUSKCN21R21F [3] CNBC. (2025, August 11). Tariff truce: What it means for U.S. and China. Retrieved from https://www.cnbc.com/2025/08/11/tariff-truce-what-it-means-for-u-s-and-china.html [4] The New York Times. (2025, August 11). U.S. and China agree to 90-day tariff truce. Retrieved from https://www.nytimes.com/2025/08/11/business/us-china-tariff-truce.html [5] Bloomberg. (2025, September 10). Analysts say U.S.-China tariff truce is working well. Retrieved from https://www.bloomberg.com/news/articles/2025-09-10/analysts-say-u-s-china-tariff-truce-is-working-well
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