Baghdad: U.S. President Donald Trump has signed an executive order extending the trade truce with China for an additional 90 days, just hours before the current de-escalation period between the world’s two largest economies was set to expire.

According to National Iraqi News Agency, the move aims to prevent U.S. tariffs on Chinese goods from rising to 145%, while averting a planned increase in Chinese tariffs on American imports to 125%-levels that could have effectively resulted in a trade blockade between the two countries.

A White House official stated that the extension, lasting until mid-November, will allow both sides more time for negotiations and help absorb the seasonal surge in imports ahead of the Christmas shopping season.

Currently, Chinese goods face a total U.S. tariff rate of 30%, while Beijing has lowered its tariffs on American products to 10%. Recently, Trump urged China to quadruple its purchases of U.S. soybeans, though it remains unclear whether Beijing has responded to the request.

U.S. Treasury Secretary Scott Beasant expressed optimism about reaching an agreement, while Trump hinted at the possibility of meeting Chinese President Xi Jinping before the end of the year if progress is made in the talks.

This development follows two rounds of negotiations held in May and July, which failed to produce a final agreement to end the ongoing trade dispute.