Displaying items by tag: trade truce

Donald Trump has extended the trade truce with China by another ninety days, narrowly avoiding a major escalation between the world’s two largest economies. The announcement came just hours before the previous deadline was to expire, averting a spike in US tariffs on Chinese imports and likely retaliatory action from Beijing. Both governments confirmed the extension, maintaining existing terms while allowing more time for negotiation. This delay is seen as a temporary relief for global markets and US companies which depend on trade with China. Earlier trade disputes saw tariffs soar to triple digits, severely disrupting international commerce and sparking volatility in financial markets. Although current tariff levels remain high, they are significantly lower than the peak rates imposed in May. Talks between Washington and Beijing continue, with hopes for a more permanent resolution and a possible summit between Trump and Xi Jinping later this year. However, key issues remain unresolved.