- China and US extend tariff suspension for another 90 days.
- Discussions led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent in Stockholm.
- The suspension maintains existing import duties, averting new tariffs.
- Positive impacts expected on multinational equities and currency pairs.
China and the US have agreed to extend their pause on tariffs for an additional 90 days following talks in Stockholm, led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent.
The extension averts immediate tariff increases and maintains current duty rates, potentially stabilizing affected markets like USDCNY pairs and commodities while encouraging a favorable response from major cryptocurrencies.
China and the US have agreed to extend their suspension on tariffs for another 90 days. This development follows recent talks ahead of a previously established pause set to expire in August 2025. President of the United States, Joe Biden, remarked, “I have determined, based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266.”
Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent led discussions in Stockholm to negotiate the extension. The official pause continues trade diplomacy between the nations.
The immediate effects include maintaining current import duties and averting new tariffs. This decision prevents value chain disruptions for US and Chinese businesses, who continue operations under existing tariff conditions.
The financial implications are notable. Foreign exchange pairs with exposure to both nations and multinational equities such as Apple and Tesla are affected. Crypto markets, not directly referenced, traditionally see speculative shifts on reduced macro risk.
Overall market sentiment improves with the tariff extension, reflecting a positive macroeconomic outlook. The move hints at potential stability gains for global markets, contingent on further diplomatic progress.
Historical trends suggest that such pauses boost risk asset markets, including crypto. BTC and ETH might experience speculative interest as global risk premiums decrease. No on-chain data directly links crypto market shifts to the extension.
“We continue to engage in constructive dialogue to maintain stabilization of our economic relations,” said Chinese Vice Premier He Lifeng during the negotiations.
