BEIJING/WASHINGTON – China and the United States have agreed to extend their mutual suspension of tariff hikes for another 90 days, a move aimed at reducing trade tensions and offering businesses greater predictability.
The extension, announced in a joint statement on Tuesday following an economic and trade meeting in Stockholm, was welcomed by market observers and exporters. Analysts said the decision reflects a mutual interest in maintaining dialogue and supporting economic stability amid ongoing trade frictions.
According to the Chinese Ministry of Commerce, both countries will continue suspending 24 percentage points of the additional ad valorem tariffs on each other’s goods for the extended period, starting Tuesday.
With bilateral trade volume reaching nearly $700 billion last year, experts emphasised that economic interdependence — rather than one-sided concessions — has driven this agreement. Chen Wenling, former chief economist at the China Center for International Economic Exchanges, described the suspension as a reflection of market realities and mutual benefit. She stressed the importance of fair negotiations and genuine cooperation in advancing future ties.
From the business community, the response has been largely positive. Brad Lich, executive vice-president at US specialty materials firm Eastman, highlighted the importance of stable US-China relations for long-term investment and supply chain planning. Eastman recently expanded its production capacity in Dalian, China, underscoring its commitment to the market.
Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China, warned that a final trade deal will take time, noting that any resolution between the world’s two largest economies will require patience and careful diplomacy.
Tu Xinquan, director of the China Institute for WTO Studies at the University of International Business and Economics, said the US move was expected, noting the growing economic pressure from tariffs that became particularly evident earlier this year.
Sean Stein, president of the US-China Business Council, called the extension “critical” for giving negotiators the space to reach a lasting trade agreement. According to the council’s recent member survey, tariffs and bilateral relations remain top concerns for US companies operating in China.
For exporters like Ningbo Lingyue Intelligent Equipment, which relies heavily on the US market, the extension brings welcome relief. “This extended truce boosts our confidence,” said Zhang Enhui, the company’s operations director. The company’s US exports — driven largely by cruise-control lawn mowers — surged over 25% year-on-year in the first seven months of 2025, reaching nearly 59 million USD.
Meanwhile, US firms like HP Inc. continue to invest in China. CEO Enrique Lores reaffirmed the company’s commitment to its Chinese operations, citing China’s strong supply chain and innovation capabilities. HP operates the world’s largest computer and printer manufacturing bases in the country.
Zhang Monan, deputy director at the China Centre for International Economic Exchanges, said the tariffs have increased sourcing costs for US firms and reduced competitiveness by forcing businesses to reroute imports through third countries. “Ultimately, it’s businesses and consumers who bear the brunt of these trade disputes,” she added.
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