They were just hours from a full-blown trade war, but instead Washington and Beijing hit pause again.

Live from the UK, this is the Marketplace Morning Report from the BBC World Service.

I'm Leanna Byrne. Good morning.

Well, it came right down to the wire, but the US and China have extended their trade truce until November.

This means those massive tariff hikes, some as high as 145%, have been put on hold.

Beijing was even ready to hit back with 125% tariffs, but for now the two sides have bought more time.

The BBC's China correspondent, Laura Bicker, is covering this one. Hi, Laura.

Hello, how are you doing? Good. Laura, yet another 90 day delay. Why 90 days?

Three months seems to be the amount of time that the United States feels that they can get a deal with

China. Now, why is this important? Well, China produces so many toys, so many goods that go

under your tree. 70% of all the toys bought in the United States come from China. So many

manufacturers, factories will now be working overtime to get as many of their goods over to the United States in that time.

However, there are major sticking points.

The first is China controls around 70% of the world's rare earth minerals.

The United States has been desperate to try to get their hands on more of these rare earth minerals.

For China, China wants more access to advanced computer chips from the United States.

So there is a possibility of a deal to be done, but it won't be easy.

It just really seems like they're kicking the can down the road all the time, doesn't it?

Yeah, and I think part of the problem for both manufacturers here in

China and those buying goods in the United States is that this uncertainty is really playing

havoc. Let me give you an example. If you're a factory owner, now I have met and been in a factory

where he's making sofas that went to the United States. In fact, one of them sits in Elon Musk's living room.

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