China and the US suspend the additional tariffs for 90 days
On August 12, 2025, China and the United States respectively announced that they would “once again suspend the implementation of the 24% tariffs for 90 days, while retaining the remaining 10% tariffs on import goods.” The “Joint Statement on U.S.-China Economic and Trade Meeting in Stockholm” clearly stated that this was a consensus reached by both sides after the Geneva Joint Statement in May, the London talks in June, and the Stockholm talks in July. The international market responded positively, with stock markets in the Asia-Pacific region and crude oil futures prices rising in response.
After the Geneva talks, China and the United States significantly reduced bilateral tariff levels and reached a 90-day “window period” for the first time. After the London talks, the two sides mutually relaxed or lifted some restrictive measures. After the Stockholm talks, the existing measures were extended for another 90 days as scheduled.
Reuters reported that extending the trade “truce” until early November has bought precious time for the United States to import goods for the crucial Christmas season. The US news website Politico quoted Terry McGraw, president of the US-China Business Council who just returned from a visit to China, as saying that the US business community welcomes the tariff suspension period.
Data shows that China’s exports to the US have declined for four consecutive months. However, the positive effects of the China-US economic and trade talks have already emerged, with the year-on-year decline in bilateral trade narrowing significantly in June. Nevertheless, the 90-day window is fleeting, and the market remains cautious. The top priority for China and the US is to safeguard the hard-won achievements of the consultations. It is not only necessary to stop the decline in figures but also to eliminate all kinds of interference and even sabotage, and continue to maintain an equal attitude, respect each other’s concerns, and strive for a win-win outcome. At recent exhibitions held in China, US companies, especially those in the technology sector, have remained highly active. After the joint statement was issued in Geneva, the shipping market between the two countries has seen a situation where “one ship is hard to find”. Foreign media also reported that a record number of Chinese companies are seeking to list in the US this year. These interactions outline the resilience of the bilateral economic and trade relationship and the realistic need for cooperation, which should be cherished and carefully nurtured.
