US and China Extend Tariff Truce Amid Ongoing Trade Negotiations

The US and China are expected to extend their tariff truce by 90 days, marking the third round of high-stakes negotiations aimed at stabilizing one of the world's most critical economic relationships. Previous talks in Geneva and London sought to curb escalating tariffs and lay groundwork for broader de-escalation. According to sources, both nations will refrain from imposing new tariffs or aggressive actions during the extension period, signaling a mutual desire to continue dialogue and avoid further market disruptions.

A new complication arises as discussions expand beyond traditional trade issues, now encompassing threats to restrict fentanyl exports. The Chinese delegation is pushing for the removal of US tariffs on fentanyl precursor chemicals, a key demand in ongoing talks. The synthetic opioid crisis in the US, fueled by Chinese-sourced chemicals, adds a contentious LAYER to negotiations.