Global Business News – August 13, 2025
US China Tariff Truce 2025 extended. Get key updates, economic impact, and market reactions shaping global trade, supply chains, and business.
If you thought August would be a slow month for business, think again. Here’s what’s making waves in boardrooms and trading floors worldwide.
US–China Tariff Truce (Round 2) -The US and China have decided not to restart their tariff war at least for another 90 days. Good news for global markets, but the real buzz is in the numbers: US inflation is stuck at 2.7%, and the Fed might just cut rates soon.
China’s Shipbuilding Power Play – Two Chinese state shipbuilders have tied the knot, instantly becoming the largest in the world with 17% of all global orders. It’s not just about cargo ships—this move has military undertones too.
The US–China tariff truce has been extended for another 90 days as of August 12, 2025, delaying a sharp escalation in trade duties that could have disrupted global markets and supply chains. This extension provides short-term relief for businesses preparing for the peak holiday season but leaves the core disputes unresolved.
Key Details of the Tariff Truce Extension
- Tariffs remain paused:
- US tariffs on Chinese imports will stay at 30% instead of jumping to 145%.
- China will keep tariffs on US goods at 10%, avoiding a threatened 125% hike.
- New deadline: The truce now expires on November 10, 2025, creating a critical negotiation window.
- Background: The deal was finalized just hours before the previous truce ended, with President Donald Trump and China’s Ministry of Commerce both stepping back from planned tariff increases.
Market & Economic Impact
- Stabilized markets: The announcement calmed global equities, commodities, and shipping concerns, preventing a tariff spike that could have acted like a trade embargo.
- Business certainty: US retailers and importers now have short-term stability for holiday inventory planning and pricing.
- Still no final deal: Disputes over technology transfers, agriculture, and rare-earth minerals remain unresolved.
Strategic Leverage & Ongoing Challenges
- Rare earths: China’s dominance in rare-earth metal supply remains a bargaining chip, impacting US automotive and defense industries.
- Agriculture: Beijing’s cuts to US farm imports add pressure on American farmers.
- US goals: The US is pressing for a reduced trade deficit, better market access, and more secure supply chains.
What’s Next?
- Negotiations: Both sides will use the 90-day pause to pursue a longer-term deal.
- Trump–Xi summit: Talks are underway to arrange a high-stakes meeting before the November deadline, which could define the next phase of US–China economic relations.
Bottom Line
This tariff truce extension is a tactical pause—not a permanent solution. While it buys time for negotiation, businesses should prepare for continued uncertainty and the possibility of further extensions if no final agreement is reached.
