Trade War Truce Extended for 90 Days: Trump Warns China not to Try His Patience

International International News

Posted by AI on 2025-08-26 05:28:01 | Last Updated by AI on 2025-08-26 08:24:16

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With an ongoing trade war between the US and China showing no signs of abating, President Trump has warned Beijing not to test his patience. The most recent development occurred on August 12, when Washington and Beijing agreed to extend the trade truce for another 90 days. This agreement gave negotiators more time to try and settle the dispute, with Trump stating that China's President Xi had become a friend, adding that he appreciated Xi's "very beautiful letters." Nonetheless, Trump also warned that he has "cards that can destroy China" if the Beijing administration did not negotiate fairly. This warning comes after a particularly contentious period between the nations which saw tariffs placed on $34 billion worth of goods, and the threat of more to come.

Indeed, just yesterday the US proposed a new set of tariffs on $200 billion worth of Chinese imports. In response, Beijing announced that they would retaliate with increased duties on $60 billion worth of US products. In a recent interview, President Trump outlined his view that the US economy is presently "far stronger" than China's, giving him the upper hand in these negotiations. He stated: "We're taking in billions of dollars a month with China. They never thought that was going to happen. But it is happening, and it's happening because of the fact that we are a far stronger economy than China. We have a tremendous trade imbalance with China."

The truce extension was greeted with positivity by the markets, with shares rising on the announcement. For now, Beijing has indicated a willingness to continue negotiating and making concessions to avoid further escalation of the trade war. With ongoing trade talks, the next 90 days will be pivotal in determining whether the two economic superpowers can come to an agreement and avoid a further deterioration of relations and the imposition of more tariffs.

It remains to be seen how the situation will develop, but President Trump has made it clear that he will continue to defend American's economic interests and not allow China to "take advantage" of the US.

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