Sun Aug 03 07:10:00 UTC 2025: **Summary:**
The US and China recently concluded trade talks in Sweden with no agreement on extending a tariff pause set to expire on August 12th. The decision to extend the pause now rests solely with President Trump. These discussions occurred amidst a broader trade offensive by the Trump administration, which includes new reciprocal tariffs on numerous countries, with rates varying based on the nation. These tariffs will go into effect on August 7. Technology exports, particularly AI chips, were central to the US-China talks, with the US concerned about the use of American technology by the Chinese military. Tensions between the two countries have been high due to Trump’s long-standing criticisms of China’s trade practices, but the recent talks are viewed as more positive, potentially leading to a less aggressive trade war.
**News Article:**
**Trump Holds Key to US-China Tariff Truce as Trade War Looms**
**Washington D.C.** – A potential renewal of the tariff pause between the United States and China hangs in the balance, with President Donald Trump holding the ultimate decision-making power. This development follows inconclusive trade talks in Stockholm, Sweden, where top officials from both nations failed to reach an agreement on extending the current tariff freeze, which is set to expire on August 12th.
“Nothing is agreed until we speak with President Trump,” Treasury Secretary Scott Bessent stated, emphasizing the President’s pivotal role in the ongoing trade negotiations.
The talks occurred against the backdrop of President Trump’s broader trade agenda, which includes the unveiling of new reciprocal tariffs ranging from 10% to 41% on imports from dozens of countries, with these changes going into effect on August 7th. China, however, was notably excluded from this latest round of tariffs.
Central to the US-China discussions were concerns surrounding technology exports, particularly semiconductors used for artificial intelligence, and fears that these could be utilized by the Chinese military.
Despite the lack of a concrete agreement, both sides have characterized the Stockholm talks as “candid and constructive,” raising hopes for a less confrontational trade landscape. White House Press Secretary Karoline Leavitt stated that trade talks with China were “moving in the right direction”.
The outcome of Trump’s decision will have significant implications for global supply chains, as the reinstatement of tariffs at their previous high levels could trigger a full-blown trade war between the world’s two largest economies. A face-to-face meeting between Trump and Chinese President Xi Jinping has been speculated.
First Piper 