U.S. and China in Talks to Extend Tariff Pause, Final Approval Pending with Trump

Overview of the Tariff Truce Negotiations
The ongoing discussions between the U.S. and China regarding the extension of a tariff truce have reached a pivotal stage. The current pause, initially set to expire on August 12, has been tentatively extended by both sides for an additional 90 days. This agreement, however, is subject to final approval by President Donald Trump, according to U.S. Treasury Secretary Scott Bessent. While both parties have signaled willingness to prolong the pause, the formal decision remains pending.

Key Details of the Proposed Extension
Under the tentative arrangement, the existing tariff suspension will remain in place beyond August 12. This 90-day extension would delay any potential imposition of new duties on a wide range of goods currently under review. The pause has allowed for continued dialogue between U.S. and Chinese officials, with a focus on resolving outstanding trade disputes and exploring the possibility of a broader, more permanent resolution.

Role of the Treasury Secretary in the Process
Scott Bessent, the U.S. Treasury Secretary, emphasized that while technical and diplomatic preparations for the extension are complete, the final decision rests with President Trump. “Nothing is agreed until President Trump's decision,” Bessent stated, highlighting the administration’s current focus on internal review before formalizing any new trade policy. This underscores the ongoing influence of executive-level discretion in shaping U.S. trade policy toward China.

Implications for Trade Policy and Market Stability
The proposed extension represents a continuation of the strategic pause in tariff enforcement, which has provided market stability and allowed for sustained economic activity between the two nations. While the 90-day extension is not binding until presidential approval, it signals the administration’s intent to maintain a period of relative calm in U.S.-China trade relations. This approach also reflects a broader policy preference for negotiated solutions over abrupt policy shifts.

Timeline and Next Steps
With the current pause set to expire on August 12, 2025, and the 90-day extension under consideration, the next major action point will be the formal decision by the President. Until that time, U.S. and Chinese trade officials are expected to continue discussions, focusing on the parameters of a potential longer-term agreement. The outcome will determine whether the tariff suspension becomes a more permanent feature of the bilateral trade framework or if a new round of duties will be imposed after the current pause ends.

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