What's happened
On August 11, 2025, the US extended a 90-day pause on escalating tariffs against China, preventing a return to April's peak rates. This extension follows recent negotiations in Stockholm and Geneva, aiming to stabilize trade relations amid ongoing disputes over tariffs, technology exports, and market access. Both sides seek a broader trade deal while managing tensions over issues like fentanyl and Russian oil imports.
What's behind the headline?
Trade Truce Amid Deep Tensions
The extension of the tariff pause between the US and China is a tactical move to avoid immediate economic disruption while complex negotiations continue. Despite the truce, underlying tensions remain high, with disputes over technology exports, market access, and geopolitical issues such as China's oil purchases from Russia.
Strategic Negotiation Dynamics
President Trump’s last-minute extension reflects his negotiation style—delaying decisions to maximize leverage. The US aims to reduce its trade deficit and protect domestic industries, while China seeks to maintain export growth and avoid punitive tariffs that could harm its economy.
Broader Geopolitical Implications
Both nations are simultaneously expanding trade alliances beyond bilateral talks, signaling a shift toward a multipolar trade order. The US strengthens ties with allies like the EU and Indo-Pacific countries, while China leverages initiatives like the Belt and Road to diversify markets.
TikTok as a Bargaining Chip
The ongoing uncertainty around TikTok’s US operations illustrates the intertwining of trade and national security concerns. Trump’s apparent impatience with TikTok negotiations suggests it will not be sacrificed easily but also will not be used as a mere bargaining chip without substantial concessions.
Outlook
The tariff pause extension buys time but does not resolve core disputes. Expect continued negotiation rounds, with potential tariff hikes looming if talks falter. The evolving trade landscape will remain fragmented, with both powers leveraging global alliances to strengthen their positions. Consumers and businesses should prepare for ongoing volatility in trade policies and supply chains.
What the papers say
Al Jazeera reported the extension occurred just hours before the August 12 deadline, citing a White House official and highlighting Trump’s positive remarks about his relationship with President Xi Jinping. The Guardian’s Michael Sainato emphasized the extension’s timing and noted Trump’s executive order pushing the deadline to November 9, alongside Chinese calls for "positive outcomes" based on equality and mutual benefit. The Guardian also detailed the tariff rates and the economic impact on US consumers, quoting economists and trade experts.
The South China Morning Post provided detailed coverage of the Stockholm talks, quoting US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, and underscored the mixed signals from the US administration before the extension was confirmed. It also explored the broader strategic context, including the US’s plans to raise tariffs on Indian imports and the evolving global trade alliances.
The New York Post’s Charles Gasparino focused on the TikTok negotiations, revealing Trump’s frustration with the app being used as leverage and the complexities involving US investors and Chinese ownership stakes. This angle adds depth to the trade talks by illustrating how technology and national security concerns intersect with economic negotiations.
Together, these sources provide a comprehensive picture: the tariff pause extension is a tactical delay in a high-stakes negotiation marked by strategic maneuvering, economic pressures, and geopolitical considerations. The coverage balances official statements, expert analysis, and insider perspectives, offering readers insight into the complexities behind the headlines.
How we got here
Since April 2025, the US and China imposed escalating tariffs reaching triple-digit percentages, disrupting global trade. In May, both agreed to a 90-day tariff pause to negotiate. Talks in Geneva, London, and Stockholm have sought to extend this truce and address structural trade issues, with final approval resting with US President Trump.
Go deeper
- What are the main sticking points in US-China trade talks?
- How does the tariff pause affect global markets?
- What is the role of TikTok in US-China trade negotiations?
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