Trump Extends 90-Day Truce on China Tariffs and Exempts Gold Imports

On August 11, 2025, U.S. President Donald Trump signed an executive order extending the suspension of planned tariff hikes on Chinese goods by another 90 days, delaying a major escalation between the world’s two largest economies. Simultaneously, he clarified that gold imports would not face tariffs, providing clarity after recent uncertainty in the metal’s market. 

Tariff Truce Extension: A Strategic Delay

The extension came just hours before the scheduled expiration of the existing tariff truce. Without it, U.S. tariffs on Chinese goods could have soared to 145%, with reciprocal tariffs from China reaching as high as 125%, potentially triggering significant disruption in global trade. 

President Trump shared the development on social media, assuring that “all other elements of the agreement remain unchanged.” This move builds on a prior 90-day hiatus agreed upon in May after trade talks in Geneva and amid ongoing dialogue in Stockholm. 

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Market Reaction: Relief Across Asia

Asian financial markets responded positively to the news. Tokyo’s Nikkei index surged to a new record high, while other key indices—including Australia’s ASX and Hong Kong’s Hang Seng—also gained. This optimism stems from the reduced threat of a sudden trade war escalation. 

In commodities markets, gold prices softened slightly following Trump’s statement that “Gold will not be tariffed!” This reassurance came after confusion last week when U.S. Customs appeared to rule that certain Swiss gold bars would attract duties. 

Trade Context and Diplomatic Outlook

The delay allows additional time for negotiations between the U.S. and China on complex trade issues—including market access, semiconductor exports, and national security concerns. Analysts also noted ongoing discussions over Chinese purchases of U.S. soybeans and the future of chip exports. 

Broader Implications for Businesses

By postponing tariff hikes, the extension offers a brief respite for global supply chains and the business community. However, economists warn that, despite the temporary calm, the prospect of persistent tariffs continues to create uncertainty and could heighten inflation pressures over time. 

Conclusion

In the face of growing trade tensions with China, President Trump's executive order postponing tariff increases and prohibiting gold taxes offers a breather. The break provides vital breathing room for trade discussions while reviving investor confidence in Asian markets. But the fundamental brittleness of world economic dynamics persists, highlighting the fact that long-term advancement depends on thorough diplomatic accords.