US, China Extend Trade Truce Through 2025 Amid Market Relief

The U.S. and China have extended their trade truce for 90 days, temporarily averting a surge in tariffs that could have disrupted global supply chains and the tech sector. This extension maintains suspended tariffs that had previously reached 145% on U.S. goods and 125% on Chinese imports, stabilizing critical industries such as semiconductor manufacturing. Despite the truce, underlying structural issues remain unresolved, including U.S. demands for China to shift from export dependency and address fentanyl precursor controls. High-level talks between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are underway in Stockholm, with the U.S. seeking a lasting deal following recent trade agreements with the EU and Japan. President Trump has expressed optimism about nearing a trade deal with China but has withheld specific details. The temporary truce and ongoing negotiations have eased fears of an escalating trade war, supporting global markets and suggesting a more pragmatic approach from the Trump administration.