Ahmet Bedirhan Arvas 
At the end of July, as a result of the talks held in Stockholm, the US and China agreed to extend the tariff truce, which began in May, for an additional 90 days until August 12, 2025. This agreement guarantees that the current trade relationship will be essentially preserved, no new tariffs will be imposed, and commercial tensions will not escalate further.
In May, the U.S. agreed to reduce tariffs on China from 145% to 30%; in return, China agreed to cut tariffs on the U.S. from 125% to 10% as part of a temporary 90-day compromise. Although this comprehensive policy shift provided a temporary breather, the infrastructure remains unclear and negotiations continue for long-term solutions.
What Is Expected from the Talks?
The Stockholm talks that began on July 28 brought together high-level representatives from both the U.S. and China. Key figures such as Scott Bessent from the U.S. Treasury and Chinese Vice Premier He Lifeng participated in these discussions, which focused on shaping the draft details of trade agreements. During the negotiations, it is especially expected that the U.S. side will bring up special additional tariffs related to synthetic drugs (fentanyl) again.
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Positive Development:
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Major companies (such as Apple, Amazon) reacted positively in the markets thanks to this temporary relaxation. Significant increases were observed in Dow Jones, S&P 500, and Nasdaq.
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For China, where alternatives to boost domestic demand are limited, such compromises have become an important tool for economic revival.
For Small Businesses:
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While this extension provides relief for some in the business world, small businesses are facing serious challenges such as planning uncertainty, inventory management, and cost forecasting. Critics argue that “working within temporary windows can impose a heavy burden on small businesses.”
If no agreement is reached, tariffs could quickly return to levels above 145%. This could lead to major disruptions in supply chains and global price increases. In the long term, a permanent solution is needed, and this extension essentially aims to strengthen the groundwork for constructive negotiation.
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