U.S. President Trump announces that a trade agreement with China is nearly within reach
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The ongoing trade talks between the United States and China have taken a significant turn, as both nations have agreed to extend the tariff truce for another 90 days. This decision was made following the third round of talks in Stockholm, which took place from July 27 to 30.
The tariff truce, initially agreed upon on May 12, was scheduled to expire on August 12. However, President Donald J. Trump announced on August 11, 2025, that he had signed an executive order continuing the suspension of heightened tariffs on Chinese imports until November 10, 2025. The reciprocal 10% tariff will remain in place during this period [1][2].
The extension provides additional time for ongoing negotiations aimed at addressing trade imbalances, unfair trade practices, expanding market access for American exports, and addressing national security concerns [1][2]. Both the US and China are hoping to use this period to achieve a more balanced trade relationship.
If the tariff truce is extended, it will prevent the automatic reimposition of tariffs that reached up to 145% for Chinese goods and 125% for US goods in China. The third round of talks in Stockholm was a crucial step towards reaching a mutual understanding on these issues [2].
The US and China have established a consultation mechanism to continue discussions on trade and economic relations. This mechanism allows for consultations to be held alternately in the US and China, or in a third country by mutual agreement [3].
In recent news, the US has also signed a deal with Japan, and it appears to be close to a deal with China. RIA Novosti reported that Trump stated the United States has just inked a deal with Japan and is close to a deal with China [4].
As the negotiations continue, both the US and China remain committed to finding a solution that benefits both economies. The extension of the tariff truce is a positive step towards achieving this goal.
Sources:
[1] White House. (2025, August 11). Remarks by President Trump on the Extension of the Tariff Truce with China. [Press Release]. Retrieved from https://www.whitehouse.gov/briefings-statements/remarks-president-trump-extension-tariff-truce-china/
[2] Office of the United States Trade Representative. (2025, August 11). President Trump Announces Extension of Tariff Truce with China. [Press Release]. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/august/president-trump-announces-extension-tariff-truce-china
[3] Office of the United States Trade Representative. (2025, July 15). USTR Announces Third Round of US-China Trade Talks. [Press Release]. Retrieved from https://ustr.gov/about-us/policy-offices/press-office/press-releases/2025/july/ustr-announces-third-round-us-china-trade-talks
[4] RIA Novosti. (2025, July 29). Trump Says US Close to Deals with China, Japan. [News Article]. Retrieved from https://ria.ru/20250729/1613627436.html
- The extension of the tariff truce between the United States and China is a significant development in the industry of finance and policy-and-legislation, given the potential implications for general-news and politics.
- Events in the US-China trade talks, such as the recent extension of the tariff truce, are closely monitored by the industry, as they have far-reaching consequences for the economy of both nations and global finance.
- The ongoing trade negotiations between the US and China involve discussions on trade imbalances, unfair trade practices, and market access, which are key areas of policy-and-legislation that impact the finance industry and the general public.
