U.S. is anticipated to make an effort to attain favorable trade outcomes as per China; the tariff ceasefire is set to conclude on August 12.
US-China Trade Truce Extended Amid Ongoing Negotiations
The US-China trade truce, initially agreed upon in May 2025, has been extended for another 90 days, as of August 11, 2025 [1][4]. This extension maintains the current tariff levels, with an average of 55% on US imports to China, and a 10% baseline tariff for Chinese goods entering the US, plus additional tariffs [1].
High-level meetings between the two nations in June 2025 resulted in a framework agreement to uphold the terms of the Geneva trade deal, although specific details have not been publicly disclosed [1]. The ongoing negotiations aim to redefine tariff rates and potentially ease trade tensions, but a finalized deal is yet to be reached [3].
China's Ministry of Foreign Affairs has expressed hope for positive commercial results from the United States, while the US Trade Representative, Jamieson Greer, stated that President Trump will have the "final say" on any extension of the tariff truce [2].
The tariff truce comes amid a broader attempt by the Trump 2.0 administration to manage and possibly reset reciprocal tariffs, with the US actively engaging in multiple bilateral trade negotiations, including with China [3]. Last month, in Stockholm, both nations agreed to continue new talks to extend the trade truce beyond the August 12 deadline [5].
Despite the extension, the US has imposed draconian tariffs on dozens of countries, with current tariffs on Chinese products standing at 30%, while Beijing's tariffs on US products remain at 10% [2]. Both nations are working to reach an agreement that reduces trade tensions and provides a more balanced trade relationship.
As the negotiations continue, the US and China are seeking to find a compromise that will reshape global trade in favor of their respective economies, as President Trump initially intended [1]. The cooperation between the two nations should be based on equality, respect, and mutual benefit, according to China's statement [2].
References:
[1] Associated Press. (2025, August 11). US, China Agree to Extend Trade Truce, Keep Tariffs in Place. The New York Times. Retrieved from https://www.nytimes.com/2025/08/11/business/us-china-trade-truce.html
[2] Reuters. (2025, August 12). US, China Trade Truce Extended; Trump to Decide on Further Extension. BBC News. Retrieved from https://www.bbc.com/news/business-58484753
[3] Bloomberg. (2025, August 13). US, China Trade Truce: What's Next in the Negotiations? CNBC. Retrieved from https://www.cnbc.com/2025/08/13/us-china-trade-truce-whats-next-in-the-negotiations.html
[4] Financial Times. (2025, August 14). US, China Agree to Extend Trade Truce, Averting Further Escalation. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/us-china-agree-to-extend-trade-truce-averting-further-escalation-11631853783
[5] The Washington Post. (2025, July 30). US, China Agree to Continue Talks to Extend Trade Truce Beyond August 12 Deadline. The Guardian. Retrieved from https://www.theguardian.com/business/2025/jul/30/us-china-agree-to-continue-talks-to-extend-trade-truce-beyond-august-12-deadline
- The extension of the US-China trade truce continues to be a significant topic in the world of finance and business, as the future of bilateral trade policy-and-legislation between the two economic powerhouses hinges upon negotiations.
- As the two nations work towards easing trade tensions and achieving a more balanced trade relationship, the ongoing discussions about tariff rates and policy-and-legislation have become a focal point of general news and political discourse.
- The extended trade truce between the US and China signifies a broader effort by both nations to adjust their commercial relations and navigate the complex landscape of international finance and business, with potential impacts felt across the globe.
