AisanFin -- U.S. President Donald Trump on Monday signed an executive order to extend the delay of implementation of sweeping tariffs, just hours before the previous agreement was set to lapse. 

The earlier truce, agreed in May, was due to expire shortly after midnight on Tuesday. Without the new order, tariffs on Chinese goods entering the U.S. would have surged to 145%.

Earlier Monday, China voiced its hope that Washington would pursue “positive trade outcomes” on the final day of the 90-day détente. “We hope that the U.S. will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the basis of equality, respect and mutual benefit,” China's foreign ministry spokesman Lin Jian said in a statement.

Asked about the deadline for Beijing, Trump responded, “we’ll see what happens,” adding uncertainty to the talks. Still, he suggested progress was possible. Trump noted that China has been "dealing quite nicely” and described his relationship with Chinese President Xi Jinping as “very good.”

The latest extension follows trade negotiations in Stockholm last month, where U.S. and Chinese officials expressed expectations that the truce would be renewed.

U.S. Treasury Secretary Scott Bessent said last week that Washington had “the makings” of a deal with Beijing but noted that further discussions were required to refine the framework and settle details.

The U.S.-China trade dispute, marked by tit-for-tat tariff threats—up to 245% from Washington and a preliminary 125% from Beijing—has shaken global markets and raised fears of a wider trade war.

Together, the two economies accounted for nearly $50 billion in GDP in 2024. Negotiations are set to continue during the 90-day extension, with White House officials telling U.S. media they remain optimistic an agreement can be reached before the new deadline.