The United States and China have agreed to extend their trade truce by 90 days, providing both nations with additional time to restructure their supply chains in anticipation of potential negotiations collapsing in November. This decision follows an executive order signed by US President Donald Trump on Monday, which postponed the implementation of higher tariffs on Chinese goods until November 10. In response, China’s Ministry of Commerce (MOFCOM) announced a reciprocal suspension of additional tariffs on US goods for the same period. Both countries will maintain existing 10% tariffs on each other’s goods, though the US will continue to impose higher tariffs on specific Chinese products, including those related to alleged fentanyl trafficking, which can reach up to 55%. Additionally, China has extended the suspension of measures under its Unreliable Entity List Working Mechanism, which was initially issued in April, affecting 17 US entities. The extension of the truce was anticipated, as US Treasury Secretary Scott Bessent had previously hinted at a 90-day extension in late July. The ongoing trade tensions have led Chinese manufacturers to explore relocating their operations to countries like Vietnam to circumvent tariffs, a strategy that has created new challenges and opportunities in global trade dynamics. Despite the temporary easing of tensions, both nations remain cautious, with further negotiations expected in the coming months.