Fate of China tariff truce hangs on Trump’s approval as US GDP grows

The United States and China have concluded two days of high-level trade talks in Stockholm with their 90-day tariff truce in limbo pending word from the White House.

Chinese Vice Commerce Minister Li Chenggang said both countries “agreed to push for the continued extension” of the truce, which expires Aug. 12 and currently holds U.S. tariffs on Chinese imports at 30%, with a 10% reciprocal tariff on U.S. goods. But U.S. Treasury Secretary Scott Bessent emphasized that a final decision still rests with President Donald Trump.

“Nothing is agreed until we speak with President Trump,” Bessent said, according to the BBC, adding that the talks were “very constructive.” Speaking on board Air Force One on his return from a trip to Scotland, Trump called the talks a “good meeting” and said he would receive a full briefing at a later time.

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The two sides have met three times since April, attempting to avoid a return to the tit-for-tat tariff war that roiled global markets earlier this year.

U.S. GDP grows despite trade uncertainty

Despite concerns about global trade instability, the U.S. economy grew faster than expected in the second quarter, according to new data from the U.S. Commerce Department. Gross domestic product rose 3% from April through June, well above the 2.3% gain projected by economists, CNBC reported Wednesday.

The rebound followed a 0.5% contraction in the first quarter and was driven by a stronger trade balance and renewed consumer spending, both of which had slumped amid earlier tariff escalations.

Financial markets reacted modestly to the upbeat data, with stock futures mixed and treasury yields rising.

Trump targets India with new tariffs

As negotiations with China continue, President Trump announced a new 25% tariff on goods from India, alongside an additional import tax penalizing India for buying oil and military equipment from Russia.

“India is our friend,” Trump wrote on Truth Social, “but its tariffs are far too high” on U.S. products. He accused India’s purchases from Russia of indirectly enabling the war in Ukraine and said the new tariffs will begin Friday as part of a broader overhaul of his trade policy, The Associated Press reported.

The move comes amid a wider effort by the administration to reset trade terms globally. Trump also announced new frameworks with the European Union, Japan, the Philippines and Indonesia — deals he says will open markets for U.S. goods while allowing for higher U.S. tariffs on select imports.

The White House argues the revenue from tariffs will help offset budget deficits tied to Trump’s recent tax cuts and stimulate domestic manufacturing jobs.