U.S.-China agree to extend tariff truce past August 12 pending Trump approval

The U.S. and China concluded two days of trade negotiations in Stockholm on July 29, 2025, agreeing to extend their existing 90-day tariff truce past its August 12 expiration date, a decision confirmed by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent [1]. The agreement averts immediate escalations in duties—currently set at 30% on Chinese goods in the U.S. and 10% on U.S. products in China—providing temporary stability to global trade dynamics [1]. However, the extension remains conditional, as U.S. officials emphasized that final approval hinges on President Donald Trump’s review following consultations with the administration [3]. This contingency underscores the ongoing uncertainty in bilateral trade relations, with Bessent stating, “Nothing is agreed until we speak with [Trump],” and warning that without approval, tariffs could revert to higher levels [3].

The talks, held at Swedish Prime Minister Ulf Kristersson’s offices, addressed core disputes including U.S. concerns over China’s oil imports from Iran, its exports of dual-use technology, and U.S. semiconductor restrictions [1]. Both sides expressed a commitment to balancing economic cooperation while avoiding escalations, with U.S. Trade Representative Jamieson Greer noting the need to “restore domestic manufacturing and reduce trade deficits” as key objectives [1]. Chinese trade negotiator Li Chenggang confirmed an extension was agreed upon but provided no additional details, while U.S. representatives highlighted the importance of securing Trump’s endorsement before finalizing terms [2]. Analysts observe that Beijing’s increased confidence in negotiations, coupled with its strategic leverage over rare earths and manufacturing capacity, may influence future outcomes [8].

The extended truce offers immediate relief to industries exposed to tariff risks, though no market-wide volatility has been reported following the announcement [1]. Cryptocurrency markets remained unaffected, as the discussions focused on macroeconomic stability rather than digital assets [1]. Broader implications for global supply chains and financial markets are contingent on the truce’s durability, with previous agreements—such as the May Geneva talks—temporarily easing tensions but failing to resolve underlying disputes [1]. The outcome aligns with broader trends in U.S.-China trade dynamics, where communication remains critical despite unpredictable policy shifts under Trump’s administration [6].

Source: [1] US and China discuss plans to extend tariff pause in trade talks, [https://apnews.com/article/us-china-trade-stockholm-tariffs-bessent-lifeng-2cffb7de31169afc8de0c02bedb4683a]

[2] Trump Set to Make Final Call on China Tariff Truce Extension, [https://www.bloomberg.com/news/articles/2025-07-29/us-china-agree-to-continue-talks-on-a-tariff-truce-extension]

[3] No deal on China tariffs until Trump says yes: Bessent, [https://www.bbc.com/news/articles/cdxyv2y48nzo]

[6] US, China tariff truce holds for now but US says Trump has..., [https://www.reuters.com/world/china/us-china-finish-talks-stockholm-tariff-truce-holds-now-2025-07-29/]

[8] China-US trade talks conclude without deal to prevent..., [https://www.cnn.com/2025/07/29/business/china-us-trade-deal]