Trump signs order extending China tariff truce by 90 days: US media

President Donald Trump is extending a tariff truce with China for another 90 days, stabilizing trade ties between the world's two largest economies.

Trump signed an order extending the truce, CNBC reported on Monday, citing a White House official. The truce, which saw the US and China agree to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies, was due to expire Tuesday.

Negotiators from both sides reached a preliminary agreement to keep the arrangement last month in Sweden, and the president's advisers had expressed optimism he would approve it.

The White House did not immediately respond to a request for comment. Trump, speaking to reporters earlier Monday, demurred when asked if he would extend the deal.

The extension will ease worries of a renewed tariff war that threatens to choke off trade between the US and China. An escalation between Washington and Beijing earlier this year shook global financial markets.

It also gives the countries more time to discuss other unresolved issues such as duties tied to fentanyl trafficking that Trump has levied on Beijing, American concerns about Chinese purchases of sanctioned Russian and Iranian oil and disagreements around US business operations in China.

The extension may also clear the path for Trump to visit China to meet with President Xi Jinping in late October, around the time of an international meeting in South Korea that the US leader is likely to attend.

Trump earlier this year ratcheted up tariffs on Chinese goods, and Beijing responded in kind. US tariffs on Chinese imports ultimately reached 145%, and China curbed access to magnets critical to US manufacturers. The two sides reached a 90-day truce in May, under which the US lowered its China duties to 30% while Beijing reduced levies on US goods to 10% and agreed to resume rare earth exports.

Trump's willingness to parlay with China has prompted concerns from national security hawks that he's unwilling to crack down on the the US's biggest geopolitical rival. Nvidia Corp. and Advanced Micro Devices Inc. reached deals with the Trump administration to secure export licenses by agreeing to pay 15% of their revenues from certain Chinese artificial intelligence chip sales to the US government.

Trump earlier Monday also signaled openness to separately allowing Nvidia to sell a scaled-back version of its most advanced AI chip to China, saying that "it's possible I'd make a deal."