Just hours before the tariff truce between China and the US was due to expire, US President Donald Trump signed an executive order extending the deadline, giving Beijing’s negotiators more time to finalize a trade deal with Washington.
After returning to the White House, US President Donald Trump reignited global economic tensions by raising tariffs on Chinese imports, fueling fears of a deepening trade war between the world’s two largest economies. The aggressive tariff hikes marked a significant escalation in the ongoing dispute, sending ripples through international markets and raising concerns among businesses and investors worldwide.
Initially, a temporary pause in the tariff exchanges was put in place to allow negotiators from both nations to work toward a mutually beneficial trade agreement. That truce was set to expire at midnight tonight. However, in a move aimed at keeping dialogue alive, Trump has extended the deadline, giving Beijing’s trade delegation additional time to finalize a deal with Washington.
Meanwhile, despite a steep 22% plunge in exports to the United States, China’s overall export figures remained resilient, growing by 7.2% in July. This growth was largely fueled by a sharp increase in sales to the European Union and Southeast Asian nations, reflecting Beijing’s strategic push to diversify its export markets and reduce reliance on US trade.
Trade analysts note that the balance of power remains complex. The US holds a competitive edge in advanced AI chip production, while China commands a critical position in the supply of rare earth minerals essential to high-tech manufacturing. Both sides appear to be treading carefully, holding back from drastic trade moves as they prepare for a potential high-stakes meeting between Chinese President Xi Jinping and Donald Trump later this year — a meeting that could shape the future trajectory of global trade relations.
