Wednesday, August 13, 2025 - The United States and China have agreed to extend their tariff truce for another 90 days, temporarily easing fears of a costly escalation in the world’s largest trade rivalry.
The deal, reached after weeks of tense negotiations, delays a planned surge in import duties on hundreds of billions of dollars in goods. Officials from both sides say the extension is meant to allow time for more comprehensive talks on long-standing disputes over market access, intellectual property, and industrial subsidies.
The reaction from global markets was immediate stocks jumped in Asia and Europe, while US indices saw moderate gains. Business groups welcomed the breathing room, but warned that a temporary pause is no substitute for a lasting solution.
Critics in Washington argue that Beijing is merely buying time without offering substantial concessions, while Chinese state media framed the extension as evidence of mutual respect and pragmatic diplomacy. Some economists caution that without structural agreements, tensions could flare again as soon as the truce expires.
If this 90-day window leads to a breakthrough, it could stabilize global supply chains and restore investor confidence. However, failure could trigger a sharp rise in tariffs, further slowing global growth and deepening political rifts.
The next three months will be crucial, with high-level trade envoys expected to meet regularly. For now, businesses and consumers can breathe easier but the countdown to the next tariff showdown has already begun.
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