The US and China have extended their trade truce for another 90 days, just hours before the world's two biggest economies were set to raise tariffs on imports of each other's goods. On Monday, US President Donald Trump signed an executive order to keep the pause in place until 10 November, while Beijing also announced an extension.

China’s Ministry of Commerce announced on Tuesday that a preliminary 75.8 per cent duty on Canadian canola seed would go into effect on Thursday, sending canola futures on the Intercontinental Exchange down as much as 6.5 per cent.

The levy would be a blow for Canada’s agricultural sector, as canola represents the biggest cash crop for farmers.

China has decided to place tariffs on Canadian rapeseed imports following an anti-dumping probe, disrupting crop flows and adding to a trade spat between the two sides.

The world’s most valuable company is now at the center of President Donald Trump’s trade war with China. Trump said Monday that he has cut a deal with chipmaker Nvidia, allowing it to sell certain artificial intelligence chips to China in exchange for a cut of the revenue,

The AI chip at the center of trade negotiations could raise billions of dollars for the U.S. government.

The Trump administration’s potential deal with Nvidia over its chip exports is rankling conservative China hawks, who see it as a bad move for American national security and want a more muscular strategy of economic statecraft against Beijing.