China–US Tariff Pause Extended: Trade Tensions Cool Down for 90 More Days
China and the US have agreed to extend their pause on new tariffs for another 90 days. This decision came after recent trade talks in Sweden. The new date to watch is August 12, but now both sides have more time to keep talking and avoid fresh trade problems.
In the meeting, China’s Vice Premier He Lifeng and US Treasury Secretary Scott Bessent discussed many issues. The US is worried about China making too many electric vehicles (EVs), solar panels, and steel, which could hurt global markets. There were also talks about stopping illegal trade of fentanyl-related chemicals.
This extension means the US will also wait before adding new rules on things like AI chips. This gives both countries a chance to solve problems calmly. While there’s no big trade deal yet, the talks are helping to reduce tension between the world’s two largest economies.
This move is also raising hope for a possible meeting between Donald Trump and Chinese President Xi Jinping later this year. Although no date is fixed, markets are feeling more relaxed.
Because of this pause, global stock markets are doing better, and Asian currencies are holding strong. It’s also good news for industries like tech and auto, which are directly affected by tariffs.
Impact:
This 90-day pause could keep the market stable for now. If talks go well, stocks and currencies may stay strong. But more tension might return after the pause ends.