Trump Extends China Truce | Balance of Power: Early Edition 8/12/2025

Trump’s 90-Day China Tariff Truce: A High-Stakes Gamble

What’s Happening?

President Trump has extended the tariff truce with China by 90 days, buying time for further negotiations. Meanwhile, China has advised its firms to avoid using Nvidia’s H20 chip, further complicating tech relations. The move has sparked discussions on global trade policies and tech security.

Where Is It Happening?

The negotiations and policy changes are impacting global markets, with direct implications for the US and China. The discussions are centered in Washington, D.C., and Beijing.

When Did It Take Place?

The tariff extension was announced recently, with the effects expected to unfold over the next 90 days.

How Is It Unfolding?

– President Trump’s extension aims to ease trade tensions temporarily.
– China’s advisory against the Nvidia H20 chip raises concerns in the tech industry.
– Analysts are divided over the long-term implications for global trade.
– Bipartisan discussions in the US highlight differing views on the strategy.

Quick Breakdown

– Tariff truce extended for 90 days to allow further negotiations.
– China advises companies to avoid Nvidia’s H20 chip.
– Global markets brace for potential disruptions.
– Bipartisan debates intensify over trade policies.

Key Takeaways

President Trump’s extension of the tariff truce with China is a strategic move to prevent immediate economic turmoil while seeking a more favorable negotiation outcome. However, China’s advisory against the Nvidia H20 chip underscores the deepening rift in tech relations.This high-stakes gamble could either stabilize or escalate tensions further, depending on the outcome of the negotiations. The situation highlights the delicate balance between economic cooperation and national security interests.

This temporary truce is a double-edged sword. It offers breathing room but also risks delaying necessary structural changes in the trade relationship.

– Nazak Nikakhtar, Wiley Rein National Security Practice Group Lead

Final Thought

President Trump’s 90-day extension of the China tariff truce is a calculated move to mitigate immediate economic risks while pushing for better trade terms. However, China’s cautious stance on tech suggests deeper issues that may not be resolved quickly. The next three months will be critical in determining whether this truce leads to lasting stability or further escalation.

Source & Credit: https://www.bloomberg.com/news/videos/2025-08-12/balance-of-power-early-edition-8-12-2025-video