US, China Agree To Extend Tariff Truce: Report

The U.S. and China have reportedly agreed to extend the tariff truce between the two countries as the trade talks in Stockholm come to an end on Tuesday. 

According to a report by NBC News, Chinese Vice Commerce Minister Li Chenggang said the ongoing tariff truce between the two sides that has kept tariffs at 30% for goods shipped from China to the U.S. will continue. He did not specify how long the extension would be.

U.S. Treasury Secretary Scott Bessent clarified that the extension is still subject to President Donald Trump’s approval. He said a 90-day extension is one option, indicating that the President could change the duration of the tariff truce. 

Bessent also explained that if a truce were not approved, then tariffs would “boomerang” back to April 2 levels, or another level that the President chooses. 

U.S. markets were in the red in midday trade on Tuesday. The SPDR S&P 500 ETF (SPY) was down 0.2% while the SPDR Dow Jones Industrial Average ETF (DIA) fell 0.43%. On Stocktwits, retail sentiment around both SPY and DIA remained ‘bullish’ territory over the past day.

The Invesco QQQ Series 1 Trust (QQQ), which tracks the tech-heavy Nasdaq 100, edged 0.04% lower. Retail sentiment on Stocktwits dipped lower within the ‘bullish’ zone.

The talks, led by Bessent and Chinese Vice-Premier He Lifeng, came ahead of the August 12 deadline of the 90-day tariff suspension, agreed upon in May during the first round of negotiations.

Li stated that the U.S.-China talks in Stockholm were candid and in-depth. He added that the two sides will continue to maintain communication and have “timely exchanges” on trade and economic issues, according to Reuters. 

Meanwhile, Bessent said the overall tone of the meeting was “very constructive.” He added that he communicated the U.S.’s concerns around China’s overcapacity globally, their purchases of sanctioned Iranian oil, and the selling of dual-use technologies to Russia. 

Bessent acknowledged that the meeting helped the U.S. understand China’s agenda better and hoped that China’s five-year plan would include rebalancing. 

He added that another meeting with his Chinese counterparts is likely to happen in another 90 days. However, any potential meeting between Trump and Chinese President Xi Jinping was not discussed during the latest meeting.

Read also: Apple In Advanced Talks With JPMorgan To Replace Goldman Sachs For Credit Card Program: Report

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