Trump extends China trade deal another 90 days

On Monday, President Donald Trump signed an executive order extending the current trade deal with the People’s Republic of China (PRC), set to expire on Aug. 12, until Nov. 10. 

“President Trump’s second 90-day trade truce with China will keep the tariff rate on most Chinese imports at 10% until Nov. 10, 2025,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “A 125% tariff was implemented in April before being paused during the first trade truce in May.”

Between 2014 and 2024, China’s trade relationship with North Carolina experienced notable shifts.

“Interestingly, over the past decade, North Carolina’s trade gap with China had narrowed, before tariffs climbed to levels that prompted the first 90-day truce,” continued Harris.

On the import side, China fell from being North Carolina’s largest source of imports in 2014 to third place in 2024.

“From 2014 to 2024, Chinese imports into North Carolina decreased from approximately $12.5 billion to $7.1 billion, or about 43%,” said Harris.

This was the third most significant decline among the top 50 countries where North Carolina imported goods in 2024.

On the export side, China’s position strengthened, moving from the third-largest to the second-largest destination for North Carolina exports over the same decade. The value of exports from North Carolina to China more than doubled, rising from roughly $2.7 billion in 2014 to about $5.9 billion in 2024 — an increase of approximately 120%, according to the EDPNC. Within the top 50 export destinations for North Carolina in 2024, this growth was the 11th most significant increase.

“The decline in Chinese imports to North Carolina has been substituted with surging shipments from Vietnam, Mexico, and Cambodia,” concluded Harris. “Each has recorded triple-digit growth since 2014, stepping in to supply goods once dominated by Chinese producers.”

On Sunday, President Donald Trump called on China to quadruple its soybean imports, according to the New York Times, as this would reduce the trade deficit with China, according to Trump. 

“China is worried about its shortage of soybeans,” said Trump in a Truth Social post. “Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA. Rapid service will be provided. Thank you President XI.”

In May, China significantly cut back its imports of American soybeans in the face of rising tariffs, so trade experts say it’s unlikely to increase imports now. USDA reports reflected a 72% reduction just one week earlier this year. 

With China being the No. 1 buyer of US soybeans, this reduction will dramatically impact the agricultural industry of North Carolina, as soybeans are in the top five cash crops for the state. China accounts for 48% of US soybean exports. In 2022, North Carolina exported $446 million in soybeans, according to the Office of the US Trade Representative. 

“Last year, that amounted to more than 27 million metric tons, worth $12.8 billion, or about 9 cents of every dollar of goods the United States sold to China,” according to a report by the New York Times. “American soybean farmers are worried about whether their biggest customer will keep buying.”

According to the USDA, approximately 1.61 million acres of soybeans were harvested in North Carolina in 2024. This is down about 10,000 acres from 1.62 million in 2023. 

Not only is China the No. 1 buyer of US soybeans, but Steve Troxler, commissioner of the North Carolina Department of Agriculture and Consumer Services (NCDA&CS), told the Carolina Journal earlier this year that China is the second largest buyer of North Carolina soybeans, at $16.9 million. 

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