Trump Delays China Tariffs Again — Is the Trade War Cooling or Just a Strategic Pause?

Another extension, another round of market speculation. President Trump's latest move to postpone China tariffs has traders scrambling—bulls see détente, bears smell temporary relief.

Tariff limbo leaves industries in purgatory

While tech stocks tick upward on the news, supply chain managers aren't popping champagne. 'Kicking the can' becomes literal policy as warehouses overflow with pre-emptive inventory stockpiles.

The cynical take? Another masterclass in manufactured volatility—Wall Street's algo-trading desks will feast regardless of outcome. When in doubt, follow the money: tariff delays mean more time for hedge funds to reposition their yuan-denominated crypto hedges.

Trump Pushes China for Bigger U.S. Soybean Buys

Over the weekend, Trump called on China to “quickly quadruple” its purchases of U.S. soybeans. He said it WOULD help shrink China’s trade deficit with America. The comment came on Truth Social and immediately stirred market reaction. Chicago soybean prices moved higher on Monday. It’s unclear if China will agree to the demand, but the timing matches the tariff extension. Trump’s push for agriculture sales has long been a pressure point in the trade talks. Bigger soybean deals could become a bargaining chip in the coming weeks.

Trade Talks Show Progress but Big Gaps Remain

This 90-day extension follows months of meetings between U.S. and Chinese trade negotiators. Talks began in Geneva in May, continued in London in June, and most recently took place in Stockholm in July. Chinese Vice Premier He Lifeng has led his country’s side, with Li Chenggang as lead negotiator. Both sides have called the talks “candid,” but difficult issues remain. Key topics include semiconductors, rare earth minerals, and the flow of advanced AI chips from companies like Nvidia and AMD. Over the weekend, Trump’s team cut a deal allowing those firms to sell some chips to China in exchange for a 15% revenue cut.

Trump’s Unpredictable Tariff Strategy Keeps Markets Guessing

This is not the first time Trump has pulled back at the last minute. His tariff approach often shifts quickly, sometimes with no warning. Earlier this year, “reciprocal tariffs” were announced, paused, altered, and delayed before finally taking partial effect. Businesses have struggled to plan around the uncertainty. Each delay can lift market sentiment in the short term, but also leaves traders wary. The latest MOVE keeps some sector-specific tariffs in place, such as those on steel and medical supplies. This ensures the pressure remains while leaving room for a bigger deal.

China’s Response and What Could Happen Next

China’s reaction has been cautious. Officials have avoided strong public statements but signaled readiness to keep talking. A potential face-to-face meeting between Trump and Chinese President Xi Jinping is now more likely. The Asia-Pacific Economic Cooperation summit in South Korea at the end of October could be the stage. Still, trust is low, and the list of disputes is long. Both nations face economic pressures at home, which may drive compromise — or push them back toward confrontation. The next 90 days will be critical in deciding whether the tariff pause leads to a deal or another round of escalation.