US and China to extend trade truce 90 days to avert tariffs: SCMP

The U.S. and China are expected to extend their ongoing trade truce by an additional 90 days, according to a report by the South China Morning Post (SCMP), which cited unnamed sources familiar with the matter. The extension would prevent the imposition of new tariffs between the two nations during the period, with the current pause originally set to expire on August 12. This development comes ahead of scheduled trade negotiations between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, set to take place in Stockholm later this week. The talks are anticipated to address broader issues beyond tariffs, including China’s oil imports from Russia and Iran, as highlighted by Bessent during a recent public statement [1].

The proposed extension reflects ongoing efforts to avoid escalating tensions ahead of the upcoming G20 meetings and potential U.S. presidential elections in 2026. While no new tariffs would be introduced during the 90-day window, the focus of the negotiations will likely shift to structural disagreements, such as Beijing’s energy sourcing practices and Washington’s concerns over U.S. debt. Analysts note that the truce extension provides both sides with additional time to address domestic political pressures without immediate trade repercussions. However, the lack of concrete commitments beyond the pause underscores the fragility of the current arrangement, with no guarantees that further extensions will be granted [1].

The outcome of the Stockholm talks will be critical in determining the trajectory of U.S.-China economic relations. If the 90-day extension is finalized, it would mark the third such pause since the initial trade war de-escalation in 2023. Despite the temporary relief, key unresolved issues—such as intellectual property disputes, supply chain dependencies, and geopolitical rivalries—remain unaddressed. Market participants are cautiously optimistic, though volatility remains a risk should negotiations falter. The extension also allows both governments to focus on internal policy priorities, including China’s ongoing economic recovery and the U.S. Federal Reserve’s monetary policy adjustments, without immediate trade-related disruptions [1].

Source: [1] [title: US and China are expected to extend trade truce by 90 Days, SCMP says] [url: https://fortune.com/2025/07/27/us-china-trade-truce-extension-90-days-trump-tariffs/]