Trump Gives U.S.–China Trade War 90-Day Timeout
President Donald Trump has signed an executive order giving the U.S. and China another 90 days before planned tariff hikes kick in. This move prevents a sharp increase in duties on goods from both countries, buying more time for negotiations and avoiding a fresh escalation in the trade war.
“All Terms Stay the Same”
Trump said all other parts of the trade deal remain unchanged. Trade analysts believe this extension could pave the way for a high-profile meeting between Trump and Chinese President Xi Jinping later this year, keeping the door open for a potential long-term agreement.
Markets React Positively
Global markets welcomed the news, with investors showing more appetite for risk. Oil prices moved higher, reflecting hopes that smoother trade relations could boost global economic growth. Brent crude climbed close to $67 a barrel, while U.S. WTI was near $64.
Impact:
* The pause in tariffs could support risk-friendly currencies like the Australian Dollar and Chinese Yuan in the short term.
* If talks fail later, the threat of renewed tariffs may push investors towards safe-haven assets like the U.S. Dollar, creating volatility in the forex market.
