On August 11, 2025, President Trump signed an executive order extending the existing tariff truce with China by another 90 days, pushing off planned hikes from 30% on Chinese imports and 10% on U.S. goods, originally set to escalate dramatically, until November 10.

What this means for Global Trade

Short-Term Stability

This extension maintains the status quo, meaning no new tariff hikes for the moment, providing a crucial window for U.S. buyers to import goods at current rates and for Chinese manufacturers to continue shipping without sudden cost shocks.

With most major manufacturing countries at equal or higher tariff rates than China, (India is above 50%, Canada is at 35%, Vietnam at 20%) this puts China far above the other countries in terms of cost for the next 3 months, barring any big developments.

Holiday Season Planning

With the pause timed through November, retailers and supply chains can stock up for the holiday season without absorbing steep added costs. That allows for better price forecasting and smoother operations, and we expect a huge surge as companies will need to capitalize on this.

It’s best to order soon and quickly, with production times averaging one to two months, people will be rushing to order and this will increase shipping costs and in some cases production times.

Signals for Deeper Negotiations

The truce’s extension sets the stage for renewed diplomacy, possibly leading to more comprehensive trade agreements ahead of a prospective Trump–Xi summit later in the year.

Compared to the rates other countries were hit with, this signals that perhaps the U.S. and China will be able to strengthen their relationship within the next months.

In the off-chance that things do deteriorate, we have built relationships with sources in other countries such as India, Italy, and are now working in Poland to build a robust manufacturing network able to resist shifting trade policies.

For now, China remains the best option for your sourcing needs and its best to capitalize now before the holiday season kicks off.