BREAKING: US-China Trade War Ceasefire Extended for 90 Days—Markets Brace for Impact

The world's two largest economies hit pause on their economic cold war—for now.

Temporary Truce, Permanent Uncertainty

Washington and Beijing extended their fragile trade détente another three months, kicking the can down the road with no structural resolutions. The move avoids immediate tariff escalations but leaves markets dangling over the same cliff edge come November.

Crypto Markets React

Bitcoin barely flinched at the news—because decentralized assets don't care about political theater. Meanwhile, traditional markets celebrated with the usual Pavlovian response to delayed pain. Gold? Flat. Treasury yields? Unmoved. Another case of 'buy the rumor, sell the news' for legacy traders.

The Real Winner

As always: volatility traders and overpaid consultants. The extension gives hedge funds 90 more days to profit from whipsawing risk assets—and lets McKinsey bill another quarter for PowerPoints about 'supply chain resilience.'

Here's the cynical truth: temporary fixes just mean more time for both sides to weaponize their economies. But hey—at least the S&P can rally on hopium until Q4 earnings crush the fantasy.

Key Takeaways

• The U.S. has extended a trade war truce with China, according to reports.
  
• Because of the truce, tariffs on Chinese products will stay at 54% instead of rising to 145%.
  
• The U.S. had been in a tit-for-tat trade war with China this year until May, when the two sides agreed to pause mutual retaliation while they negotiate.
  

The U.S. extended its trade truce with China hours before the U.S. was set to raise import taxes on China to an extreme level.

President Donald TRUMP extended the trade war pause Monday for another 90 days, CNBC reported, citing White House officials. Earlier in the year, the two countries had waged an escalating economic war on one another, raising tariffs and restricting exports crucial to one another's industries.

Since May, the two sides have scaled back their mutual tariffs (though still held them at elevated levels) and lifted restrictions on materials such as rare earth minerals from China and U.S.-made computer chips.

Had Trump not extended the pause, tariffs on most products from China WOULD have risen to 145% starting Tuesday.