Breaking: US & China Strike Deal to Extend 90-Day Trade War Truce – Markets Breathe (For Now)

Trade tensions take a timeout as the world's two largest economies hit pause on escalating tariffs. The 90-day extension buys time—but don't expect Wall Street to stop hyperventilating over every tweet.

Truce or Illusion?

Both sides claim victory while quietly reloading negotiation bullets. Beijing gets breathing room for its tech sector; Washington avoids immediate consumer price spikes ahead of election season. Classic geopolitical theater.

Crypto Angle?

Bitcoin barely flinched—because decentralized networks don't care about trade wars. Meanwhile, traditional markets celebrated with the enthusiasm of day traders discovering leverage. *Insert eye-roll here*.

Bottom Line:

Three more months of fragile peace before the next tariff tantrum. Smart money's already hedging with BTC—because when nation-states play chicken, apolitical hard money wins.

Li made the announcement during a briefing in Stockholm on Tuesday following trade talks between the US and China. During the briefing, Li described the talks as “candid” and “in-depth.” The Chinese official also stated that the two countries exchanged healthy views on macroeconomic issues during their talks. The US and China will reportedly continue to remain in close contact during the tariff pause to come to a permanent deal.

In addition, US President TRUMP has indicated positive China-US economic relations right now, which business groups have welcomed. He recently told reporters: “We are getting along well with China.” He also mentioned that President Xi has invited him to China, and he’s looking to make it happen “in the not-too-distant future.”

Outside of China, Multiple framework agreements between the United States and other trading partners have jacked up tariffs on foreign goods imported to America while setting levies on US exports at or NEAR zero. Overseas trading partners have agreed to open previously closed markets to some US goods, pledged increased investments in the United States, and dropped some of what the Trump administration has lambasted as non-trade barriers, like taxes on digital services. In Europe, there is still a feeling of uncertainty about the EU-US trade deal.

It remains uncertain how long the tariff deal pause is between the US and China