US, China Tariff Truce Holds for Now but US Says Trump Has Final Say

Washington, D.C., July 29, 2025 — The United States and China have maintained a fragile truce on trade tariffs amid ongoing negotiations, but American officials emphasized today that former President Donald Trump, now serving his second term, retains the authority to alter the agreement at any time.

Following months of economic talks, both nations agreed in early July to suspend new tariffs and maintain existing rates on over $350 billion in goods. This pause comes as global markets remain sensitive to signs of renewed tensions between the world's two largest economies.

White House Signals Cautious Optimism

The White House released a statement Tuesday reaffirming the current tariff freeze, highlighting progress on issues such as intellectual property protections and technology transfers. However, the administration underscored that President Trump reserves the right to adjust tariffs if China fails to comply with American demands on trade practices and market access.

"The President will continue to monitor China's commitments closely. While the current pause is in place, he will not hesitate to act in America's best interest," said a senior administration official. No further details were provided on potential timelines for new talks or additional tariff actions.

China Urges Stability, US Businesses Watch Closely

China's Ministry of Commerce called for "mutual respect and cooperation" and urged the United States to avoid abrupt changes that could disrupt supply chains. Chinese officials reiterated their commitment to upholding the terms of the truce, but warned that escalating tariffs could threaten global economic recovery.

American manufacturers and importers, especially those in the technology, automotive, and agricultural sectors, remain wary. Uncertainty over tariff policy has led to increased costs and complicated long-term planning for many U.S. companies with deep ties to Chinese supply chains.

Global Markets React

Financial markets responded positively to the continued truce, with the Dow Jones Industrial Average rising 0.7% in early trading. Analysts caution, however, that volatility could return if trade talks falter or if President Trump opts to reimpose tariffs unilaterally.

• Tariff freeze covers $350 billion in goods
• Key issues include intellectual property and technology transfer
• US business leaders push for long-term certainty

The situation remains fluid, with both governments signaling willingness to negotiate but leaving the door open to renewed trade tensions. Observers say the coming months will be critical as the U.S. presidential administration balances domestic economic priorities against ongoing strategic competition with China.