The United States is on the verge of finalizing an extension to its tariff truce with China, President Donald Trump has indicated, as talks advance toward securing a new agreement before the current arrangement expires on August 12, 2025. The truce, originally established in mid-May and solidified through preliminary agreements in May and June, halted escalating tariffs and relaxed U.S. restrictions on Chinese access to rare-earth minerals and certain technologies.
In an interview with CNBC, Trump confirmed that the two sides are “getting very close to a deal,” stressing that while a deal was “not imperative,” he expected a “good deal.” He noted that U.S.–China relations are currently “very good,” and added that he would only meet Chinese President Xi Jinping if a trade pact is successfully concluded, such a meeting is anticipated before the end of 2025.
U.S. Treasury Secretary Scott Bessent, who led economic delegate talks in Stockholm alongside Chinese Vice Premier He Lifeng, emphasised that discussions remain “productive” but technically incomplete. Bessent reiterated that any extension ultimately requires Trump’s formal approval, and warned that the truce remains fragile until terms are finalised .
Analysts expect a 90-day extension of the tariff pause is likely, providing breathing room to negotiate more substantive economic and technology-related issues. The Stockholm session, where negotiators aimed to lay groundwork for broader cooperation, was described as constructive by both sides, although technical details are still being finalized .
Failure to renew the truce could trigger a rapid escalation in trade conflict – U.S. tariffs could climb back into triple-digit territory, with countermeasures from China likely disrupting global supply chains and investor confidence .
With momentum building, a final accord could pave the way for a high-profile Trump–Xi meeting before year-end, conditional on successfully locking in the trade arrangement.
