It is a White House source that tells CNBC that Trump has signed a decree to extend the tariff pause for another 90 days.
The message comes at the last minute. Tuesday, August 12, marks the end of the previous 90-day tariff pause that the US and China – the world's two largest economies – agreed on in May.
After the tariff talks in Stockholm between China and the US in July, Beijing expressed optimism and said that both parties were working to extend the tariff pause by another 90 days.
The US negotiators, however, referred the question further and said that it is up to Donald Trump to decide on a possible extension of the pause.
Unresolved issues
So far, Trump has not given any indication of what he is leaning towards, which creates concern that the tensions between the world's two largest economies will worsen again.
Earlier on Monday, Trump refused to reveal his plans.
We'll see what happens, Trump said to reporters at the White House.
He also added that the relationship between him and Chinese President Xi Jinping "is very good".
With the new deadline, the countries have more time to resolve unresolved issues such as tariffs related to fentanyl trade, Chinese state aid to companies, Beijing's purchase of Russian and Iranian oil, and disagreements over American business operations in China.
The extension is the latest example of how Trump's tariff messages change with short notice, which has caused many entrepreneurs to tear their hair out in despair over unclear terms.
Uncertainty about the decree
The wording of the president's decree has not been made public, and it is therefore still uncertain whether it implies any other changes to the US trade policy, writes the news agency Bloomberg.
In May, the US and China agreed in Switzerland on a 90-day pause for further tariff increases to create time and space to reach a long-term sustainable agreement.
The tariff pause meant that the US, after the shock increase to 145 percent in the spring, now has tariffs on Chinese imports of 30 percent. China has lowered from 125 to 10 percent.
Even though it was uncertain until the last minute whether the tariff pause will now be extended, analysts expect a summit between Trump and Xi to take place in Beijing in the coming months.
