11.08.2025 21:50
President Donald Trump has granted a 90-day reprieve in the ongoing trade dispute with China, extending a tariff truce, according to CNBC. This decision, announced via executive order, temporarily averts a potential escalation of trade tensions between the world's two largest economies.
The previous agreement, slated to conclude today, involved reciprocal tariff reductions and a relaxation of export limitations on specific technologies and rare earth magnets. Trump's latest action maintains this fragile peace, offering a period of continued negotiations. While a preliminary accord to extend the ceasefire was reached during talks in Sweden last month, the White House's official confirmation remains pending. Trump himself offered ambiguous responses to reporters' inquiries on the matter earlier this week.
This extension of the truce will undoubtedly alleviate anxieties surrounding a renewed tariff war, potentially stabilizing global financial markets previously rattled by escalating trade friction between Washington and Beijing. The move could also facilitate a high-profile meeting between President Trump and Chinese President Xi Jinping at an upcoming international summit in South Korea later this October.
The temporary truce follows earlier this year's escalation, where increased US tariffs on Chinese goods prompted retaliatory measures from China. The current extension provides crucial breathing room for further negotiations and demonstrates a commitment to finding a lasting resolution to the trade conflict, though the future remains uncertain. This information is not financial advice.
