President Trump delays new China tariffs for 90 days amid trade talks and Nvidia chip export deal

U.S. President Donald Trump signed an executive order on Monday to pause new tariffs on China for another 90 days. This pause delays the extra tariffs that were supposed to start on Tuesday, as reported by CNBC, Wall Street Journal, Washington Post.

The new deadline for these tariffs is now pushed back to November 9. The White House did not immediately comment when asked about this decision. This means the current tariff rates from May — 30% on Chinese imports and 10% on American goods — will stay the same for now.

What does the tariff pause mean for trade between the US and China?

These tariffs will not go back up to the very high previous levels, which were more than 100% in some cases. Some tariffs on specific products like steel and medical supplies will still keep the overall trade taxes between the US and China high, as per the report by Yahoo Finance.


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Recently, Trump has also focused on Russia and Ukraine issues and added a 25% tariff on Indian imports because India is buying Russian oil. This tariff pause might increase chances for a meeting between Trump and Chinese President Xi Jinping later this year.

Upcoming meetings could affect US-China trade talks

Both the US and China have suggested they might meet at the Asia-Pacific Economic Cooperation summit in South Korea at the end of October. The tariff pause comes after three meetings between the US and Chinese trade teams in recent months: in Geneva (May), London (June), and Stockholm (July), as stated by Yahoo Finance.

These meetings showed some progress but tensions still remain between the two countries. China's Vice Premier for economic policy, He Lifeng, attended all three meetings. After the last meeting in Sweden, Chinese trade negotiator Li Chenggang said the two sides had “candid exchanges over their economic concerns.”

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Important topics in talks include semiconductors, especially plans to restart exports of Nvidia AI chips to China. Chinese exports of rare earth minerals are also part of the discussions. Many other trade issues between the US and China still need to be resolved, according to the report by Yahoo Finance.

Over the weekend, the US government made a deal with Nvidia and AMD to allow these companies to sell some chips in China. In return, Nvidia and AMD agreed to give 15% of the sales from China back to the US government.

FAQs

Q1. Why did President Trump pause tariffs on China?
He paused tariffs to give more time for trade talks and avoid raising taxes on imports.

Q2. When will the new tariffs on China start after the pause?
The new tariffs are delayed until November 9, 2025.