After imposing 125% tariffs and engaging in a series of retaliatory actions, here's why Trump decided to announce a 90-day pause on duties related to China.

In a surprising turn of events, US President Donald Trump announced on Monday that he would be delaying the planned increase in tariffs on Chinese goods, just hours before the trade truce between Washington and Beijing was about to expire. "I have just signed an Executive Order that will extend the Tariff Suspension on China for another 90 days," Trump shared on his Truth Social platform. Earlier this year, both Washington and Beijing had been slapping hefty tariffs on each other's products, driving rates up to crippling triple digits and throwing a wrench in trade. However, in May, they both agreed to temporarily ease those tariffs. In the executive order released on Monday, the White House reiterated its stance that the “large and persistent annual US goods trade deficits” pose an “unusual and extraordinary threat to the national security and economy of the United States.” The order also highlighted ongoing talks between Washington and Beijing "to tackle the lack of trade reciprocity in our economic relationship" and mentioned that China has been making “significant steps toward addressing” the US's concerns, according to news agency AFP.

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