WASHINGTON, Aug. 12 — The United States and China have agreed to extend a pause on new tariff hikes for 90 days, President Donald Trump announced Monday. Without the deal, tariffs were set to rise immediately, risking a sharp slowdown in trade between the two economies.

China said it will maintain its existing 10% tariffs on U.S. goods during the extension, based on talks held in Sweden last month.

The move comes after Trump’s “reciprocal” tariffs pushed U.S. rates to levels not seen since the Great Depression. Treasury Secretary Scott Bessent warned China that continued purchases of Russian oil could trigger tariffs of up to 500% under pending legislation.

Trump described recent trade discussions with Beijing as “constructive” and said his relationship with President Xi Jinping remains “very good.”