Trump to have final say on what becomes of the trade truce extension with China

The meetings in Stockholm this week were pretty straightforward as both sides are just wanting to extend the status quo for longer. And that means to delay the idea of a potential trade war as they reassess their respective positions.

China confirmed the extension but the US camp later came out to say that “our Chinese counterparts have jumped the gun a little”. Adding that they will have to present the facts to Trump and then “he will decide”.

It’s a petty move but it underscores the type of frustrations in dealing with the situation I guess. And it continues the tradition of the US and China both having differing interpretations of what was agreed in talks. If anything, these sorts of little jabs show how the two sides continue to struggle to find a smooth and peaceful resolution.

Sure, they’re both playing nice for now but we’ll see what becomes of the next step. The ball is back over to Trump’s court but an extension is more than likely at this stage.

A 90-day extension to the trade truce means that we could see it pave the way for a Trump-Xi meeting some time in October and/or before Thanksgiving. That is the main agenda to watch out for next when it comes to trade talks between the two sides.

They will surely make a show of it like they did in the past. But if you recall what happened to the Phase One trade deal back in 2019, it’s all just theatrics and a facade at the end of the day. When push comes to shove, the massive ego from both sides means that there will be no real concessions. Expect that to be how things play out again in the months ahead.

This article was written by Justin Low at investinglive.com.



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