In a landmark move aimed at easing strain on global markets, the U.S. and China agreed to extend a pause on 24 percentage points of reciprocal tariffs for another 90 days starting August 12, 2025. This decision comes after three rounds of high-stakes economic and trade talks held in Geneva, London and Stockholm between May and July.
"The U.S. should work with China to continue to enhance consensus, reduce misunderstandings, strengthen cooperation, further deepen dialogue and consultations, and strive for more win-win outcomes," said Chinese vice premier He Lifeng during the latest round in Sweden.
Tariffs imposed in tit-for-tat fashion have taken a toll on consumers and businesses, driving up costs, disrupting supply chains and creating uncertainty that hinders innovation and investment. While some argue that tariffs boost government revenue, the broader economic slowdown has often offset any gains.
By extending this tariff truce, both sides are signaling a willingness to reset the tone of their economic relationship. For young entrepreneurs and tech startups watching closely, the move could mean a more predictable environment for cross-border ventures and partnerships.
On a macro scale, stabilizing the world's two largest economies can help restore confidence in global trade. Experts say that clear rules and open dialogue between the U.S. and China are essential for sustainable growth, from emerging markets in Southeast Asia to established hubs in Europe.
As the deadline approaches, all eyes will be on policymakers to see if this pause evolves into longer-term solutions. For global citizens and business leaders alike, the outcome could redefine how major economies collaborate in an interconnected world.
Reference(s):
cgtn.com
