Dhaka, Aug. 12 -- President Donald Trump on Monday extended a trade truce with China for another 90 days, postponing a potentially damaging escalation between the world's two largest economies.

Trump announced on Truth Social that he had signed an executive order to prolong the agreement, saying "all other elements of the Agreement will remain the same." China's state news agency Xinhua confirmed a parallel announcement from Beijing.

The previous deadline was set to expire at 12:01 a.m. Tuesday, which could have triggered U.S. tariffs on Chinese goods to rise from the already steep 30% rate, prompting Beijing to retaliate. The pause gives negotiators more time to address differences, raising the prospect of a summit later this year betw...