US-China Tariff Truce Extended to August Amid Trade Talks

The U.S.-China tariff truce, initially agreed upon in May 2025 to reduce prohibitive tariffs and ease trade tensions, is set to expire imminently but is expected to be extended, according to multiple sources. Negotiations held in Stockholm were described as productive, with both sides aiming to preserve the 90-day truce that scaled back tariffs significantly, although no final agreement has been announced yet. President Donald Trump has not clearly indicated his stance on the extension, leaving some uncertainty, but U.S. Treasury Secretary Scott Bessent expressed optimism about reaching a deal beneficial to both nations. The extension aims to maintain stability in global trade and avoid renewed tariff escalations that could disrupt markets, especially given recent declines in trade volumes between the two countries. Both U.S. and Chinese officials have emphasized ongoing dialogue and commitment to structured negotiations, with an extension likely to last until at least August 12, 2025. Despite the truce, analysts note the relationship remains tense, with structural moves toward economic decoupling continuing amidst cautious optimism for future engagement.