US-China Trade Truce Extended; China Urges Firms to Avoid Nvidia Chips | Bloomberg Brief 8/12/2025

**US-China Trade Truce Lives On: New Challenges Emerge**

What’s Happening?

The U.S. and China have prolonged their fragile trade ceasefire, but tensions simmer beneath the surface. President Trump’s extension of the tariff pause contrasts with China’s cautious stance on American tech, casting a shadow over market stability. With inflation data looming, investors tread carefully.

Where Is It Happening?

The developments span U.S.-China relations, with ripple effects felt in global markets, particularly semiconductor and equity sectors.

When Did It Take Place?

The trade truce extension was announced on August 12, 2025, amid ongoing geopolitical and economic discussions.

How Is It Unfolding?

– **Trade Truce Extended**: U.S. tariffs on Chinese goods remain paused for another 90 days.
– **Nvidia Chips Under Fire**: China advises local firms to avoid H20 processors amid revenue-sharing demands by the US.
– **Inflation Watch**: Analysts from UBS and JPMorgan prepare for pivotal U.S. CPI data release.
– **Market Cautiousness**: Equities futures react minimally, reflecting cautious optimism.

Quick Breakdown

– Trade truce extended to see out another quarter.
– China warns against Nvidia’s H20 chips, complicating global tech supply chains.
– U.S. inflation data awaited, with persistent inflation concerns.
– Norway’s Wealth Fund reports strongest quarter since late 2023.

Key Takeaways

The extended truce offers temporary relief, but underlying tensions, especially over technology and trade, threaten to derail progress. Meanwhile, the upcoming U.S. inflation report could dictate market movements, adding another layer of uncertainty. As nations navigate these complex dynamics, the delicate balance between cooperation and competition remains in flux. The intersection of geopolitics and economics continues to challenge global stability, underscoring the fragility of international agreements.

The knife-edge balance between technological protectionism and economic interdependence could redefine global trade as we know it.
– Nicolai Tangen, Norway Wealth Fund CEO

Final Thought

This 90-day reprieve is a double-edged sword: while it calms near-term investor nerves, underlying conflicts could erupt later. **The path forward hinges on both sides balancing short-term gains with long-term stability. Markets will be on pins and needles as inflation data and tech disputes unfold.**

Source & Credit: https://www.bloomberg.com/news/videos/2025-08-12/bloomberg-brief-8-12-2025-video