Trump to Decide on Trade Truce Extension with China Ahead of Talks
The current agreement, set to expire August 1, paused the escalation of reciprocal tariffs between the two economic superpowers.
Quick overview
- U.S. Treasury Secretary Scott Bessent stated that President Trump will decide on extending the tariff truce with China.
- The current agreement, which pauses reciprocal tariffs, is set to expire on August 1.
- A 90-day extension is a leading option being discussed, with further talks expected to follow.
- China's chief negotiator emphasized the importance of maintaining communication on economic and trade issues.
With just two days remaining before high-level trade talks in Stockholm, U.S. Treasury Secretary Scott Bessent said that President Donald Trump will make the final call on whether to extend the tariff truce with China.
The current agreement, set to expire August 1, paused the escalation of reciprocal tariffs between the two economic superpowers.
A 90-day extension is among the leading options under discussion, according to U.S. Trade Representative Jamieson Greer, who noted that another round of talks between U.S. and Chinese negotiators would likely follow within that period.
“We will brief President Trump on the process we’ve carried out here,” Greer told reporters. “We’ve had constructive meetings, and we hope to present him with a positive report. But ultimately, the decision to extend the truce is his.”
Beijing Aims to Sustain Reciprocal Tariff Freeze
China will press to maintain the suspension of reciprocal tariffs with the United States, said chief Chinese negotiator Li Chenggang on Tuesday. Speaking at a press conference in Stockholm, Li emphasized that both sides had reviewed the consensus reached in prior talks in Geneva and London.
He added that the two countries will continue to maintain communication and hold “timely exchanges” on key economic and trade issues in the coming weeks.
The outcome of this week’s meeting could shape the next phase of global trade policy and send important signals to financial markets and multinational businesses watching closely from the sidelines.
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