We and China are close to deals to extend the tariff ceasefire
The US and China could extend the tariff ceasefire ahead of the August 1 deadline.
WASHINGTON – The Trump administration and Chinese officials appear to be moving towards extending the 90-day tariff ceasefire that both sides attacked in May, but President Donald Trump has not yet signed off.
The momentum to extend the ceasefire came as a result of two days of US-China talks in Stockholm, as the two countries became modest with massive, triple-digit tariffs on each other’s imports.
“I’m going to talk to the president about whether that’s what he wants to do,” Trump’s trade trade representative, Jamieson Greer, told reporters in Stockholm. “That’s certainly something that’s been discussed.”
When Trump returned to the White House from Scotland to Air Force 1, he expressed optimism about the latest debate between his economic team and Chinese officials.
“They’ll explain to me tomorrow, either we’ll accept it or not,” Trump said, referring to the extension of the ceasefire.
China’s top trade negotiator Li Chenggang said the two countries agreed to push for an extension of the trade ceasefire without specifying when or how long.
In May, the Trump administration and China agreed to cut tariffs for 90 days to eliminate the trade war between the two biggest economies in the world, but the two continued to negotiate a long-term deal. However, the long-term contract between the US and China has yet to come ahead of the August 1 deadline, when nearly 180 countries were preparing to impose high tariffs on goods.
During the May ceasefire, the US reduced the 125% mutual tariffs imposed on Chinese imports to 115%, to a baseline tariff of 10%, consistent with the tariffs imposed by the Trump administration on other countries. Trump’s 20% tariff was a slap in China over fentanyl production, meaning that US tariffs on China are totaling 30%.
Next, the Chinese government agreed to reduce retaliatory tariffs on US exports from 125% to 10% for 90 days.
The Treasury Department, Scott Bescent, who participated in the trade talks in Stockholm, said he thought Trump was “shocked” by the recent announcement of the trade deal between Japan and the European Union.
“They never comply, but I think they were more in the mood due to the wider discussion,” Bescent said, calling the tone of a “constructive” lecture.
Bescent said Trump’s team communicated the US’s need to improve its trade balance with China in areas such as rare earth minerals, semiconductors and drugs.
“We’ve repeated to them. We don’t want to separate. We need to eliminate certain industries and risks,” Bessent says.
Reach Joey Garrison with X @joeygarrison.
