Trump has signed an executive order extending the pause on the harshest U.S. tariffs on Chinese imports for another 90 days, preserving a fragile truce that was set to expire. The extension keeps reduced tariff rates in place while Washington and Beijing continue talks on trade reciprocity, national security concerns, and market access. For businesses and investors, the move removes an immediate cliff edge and buys time, but it does not resolve the underlying dispute.

Here’s what’s staying in place during the extension:
– Suspended or lowered tariffs on select Chinese goods, compared with the peak rates previously imposed.
– Continued access to critical inputs—particularly in advanced manufacturing and clean tech supply chains—that had been disrupted during the tariff escalations.
– Ongoing negotiations aimed at addressing structural issues, including industrial subsidies, data and security rules, and retaliatory measures.

Why it matters for markets and companies:
– Visibility on near-term costs: Importers can plan inventory and pricing with more certainty through the next quarter, lowering the risk of sudden margin shocks.
– Supply chain breathing room: Manufacturers reliant on components or materials from China, including electronics and rare inputs, get continuity for now.
– Policy optionality: The White House retains leverage—tariffs can snap back if talks stall—so companies should still scenario-plan for higher rates later this year.

Key risks to watch:
– A breakdown in talks could restore elevated tariffs with little notice.
– Beijing’s retaliatory posture may shift if domestic pressures rise, affecting U.S. exports.
– Political timelines may compress decisions, introducing headline risk and volatility.

Practical takeaways:
– Use the 90-day window to diversify suppliers, renegotiate contracts, and hedge input costs.
– Revisit pricing strategies and customer communications to reflect current duty assumptions.
– For investors, consider that China-exposed sectors (consumer electronics, machinery, autos, retail) may see a relief bid, but headline sensitivity remains high.

Bottom line: The extension postpones pain and preserves negotiating leverage. It’s a tactical de-escalation—not a durable settlement—so keep contingency plans active.