Shortly after returning to the White House, US President Donald Trump triggered fear and uncertainty across the globe when he began raising tariffs on Chinese goods, setting the stage for a rapidly escalating trade war between the two economic heavyweights.
A pause in the tariff volley, intended to allow for negotiations, was scheduled to end at midnight tonight. However, Trump has given Beijing's representatives more time to reach a trade deal with Washington.
Despite a sharp 22% drop in shipments to the US, China's overall exports rose 7.2% in July. Sales to the European Union and Southeast Asia surged, demonstrating Beijing's success in diversifying its markets.
While the US has leverage with advanced AI chips, China counters with its dominance in critical minerals. Analysts say both sides are delaying major trade moves ahead of a possible meeting between Xi Jinping and Trump later this year.