U.S.-China Tariff Truce Extension Hangs in the Balance as Deadline Nears

The deadline nears. The United States and China sit at a table. They share a tariff truce. The trade deal stands on a thin line. The agreement, born in May, will end on Tuesday. The two leaders now face the risk of trade tensions rising.

Background and Current Status

In May 2025, the U.S. and China made a 90-day deal. They did so to slow down high trade duties. In April, some duties reached 145%. The truce cut tariffs and stopped new fines. This pause helped both sides talk toward a longer plan.

• Tariff Situation:
  • The U.S. puts a 20% tariff on many Chinese shipments. This move follows fentanyl trafficking claims.
  • Many Chinese goods get an extra 10% tariff.
  • Selected items bear a 25% rate from the past U.S. policy.
  • American goods for China face tariffs above 32.6%, according to the Peterson Institute for International Economics.

After a meeting in Stockholm last month, Chinese voices sounded optimistic. Still, the U.S. now waits for a decision. President Donald Trump must choose on the extension. His pause makes new tariff hikes a real risk.

Trade and Economic Impact

Trade data shows a strain. China’s exports to the U.S. dropped for the fourth month. In July, they fell by 21.7% compared to last year. U.S. exports to China also fell by 10.3% during the first seven months of 2025. Experts see a future deal. They believe China might soon buy more American goods. They list these main sectors:

• Energy
• Agriculture (mainly soybeans)
• Semiconductor equipment (under agreed conditions)

Julian Evans-Pritchard of Capital Economics thinks the next deal may look like a second version of the phase-one deal from 2020. The earlier promise broke down because of the pandemic. Trump has asked for a boost in Chinese soybean orders. In recent months, the orders have grown fast.

Upcoming Summit Prospects and Political Dynamics

Experts expect a meeting soon in Beijing. President Trump and President Xi Jinping may meet in the coming months. Ian Bremmer of Eurasia Group says the meeting might steady ties. Yet this does not signal friendlier feelings. Both banks seem to move toward economic separation as world trade shifts.

Other Points of Contention

Other issues make talks hard:

• Semiconductor Export Controls:
  U.S. export rules for chips stir debate. Nvidia plans to sell its H20 chip in China again. Many see this as a small change, not a full easing of rules. U.S. voices split. Some worry about China using the chips for military work. Others note that too strict rules might push China to make its own chips.

• Rare-Earth Metals Exports:
  Rare-earth elements help make tech products. China leads this market. It recently let more rare-earths and magnets pass to the U.S. A higher flow of these goods may affect future talks.

• Secondary Tariffs on Russian Oil Purchases:
  The U.S. adds extra tariffs on nations buying Russian oil. India and maybe China face these charges. China buys a large part of Russia’s oil. This fact may make future talks tougher.

Outlook

An official move on the tariff truce is still unknown. The choice that Trump makes will shape U.S.-China trade in coming months.

Tensions brew on trade balances, export rules, and global plans. Global markets wait with bated breath. A high-level meeting between Trump and Xi might calm the tension. Yet both sides must work hard to guide this complex process.

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This article will be updated as new information becomes available.

The Rise of ‘Treatonomics’: From Lipsticks to Concerts, Consumers Seek Comfort in Uncertain Times

In times when the economy feels weak, prices rise and jobs seem unstable, a new trend spreads. People call this trend “treatonomics.” Many choose small joys to lift their day. They buy items like lipsticks and collectible dolls. They also spend on events like concerts. Each purchase helps them feel a bit happier.

What is Treatonomics?

Treatonomics shows a way of spending that stays real even when money is tight. It goes beyond the old idea that people buy small luxuries in hard times. Retail expert John Stevenson notes, “You may not buy a new sofa or dress, yet you might pick up new throw pillows or a lipstick. These small treats lift your mood without much cost.” Home décor, personal care products, and collectibles hold their ground even in hard times.

Everyday Luxuries Meet Life-Affirming Experiences

Unlike the focus on cheap items, treatonomics covers many parts of life. After the Covid-19 time, people care more about well-being and fun memories. They spend on concerts and similar events. Some even pay over $200 to see a favorite artist perform. Stevenson says, “People cut back on daily costs but choose a fun event when they can. They may buy cheaper groceries yet spend a lot on a concert weekend.”

What Drives the Treatonomics Trend?

Experts see several reasons behind treatonomics.

• Joy Without Regret: Meredith Smith at Kantar explains that treatonomics is not about bad habits. It is about adding moments of joy to life. A small treat shows success amid hard times.

• Shifts in Life Goals: Many find that big life steps, like buying a house or getting married, have changed. Younger groups celebrate with smaller, fun events. They mark personal wins with events such as pet birthdays or a day for self-care.

• Youthful Play: Millennials and Gen Z enjoy fun activities that remind them of childhood. This choice brings sales to items like special LEGO sets. Some even spend up to $1,000 on kits that spark a sense of wonder.

Consumer Confidence and Economic Outlook

Even with treatonomics strong, many remain cautious. In the UK, a consumer index fell a bit in July 2025. In the US, numbers creep up, yet most still feel less secure than in past years. This state of mind may last for years. Experts expect that treatonomics and fun spending will stay a part of everyday life.

What This Means for Brands and Consumers

Brands now face a changing scene. They must move quickly to meet new wants among buyers. The mix of regular luxuries with memorable events may split into small trends based on region and culture. At the same time, buyers find new ways to celebrate. From a new lipstick or a rare toy to nights filled with music and friends, these treats bring hope in uncertain days.

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When the world feels unsure, treatonomics shows us one way to balance care with fun. Each treat—a small buy or a special night out—binds a simple act to a burst of joy. This trend helps people find a light moment even when times are tough.

Bank of England Cuts Interest Rates to 4% Amid Economic Balancing Act

On Thursday, August 7, 2025, the Bank of England cut its Bank Rate from 4.25% to 4%. The bank made this 25-basis-point cut with care and a steady pace. It aims to boost growth now while keeping prices in check.

Monetary Policy Committee Voting Split

The Monetary Policy Committee split its votes 5–4. Five members chose the cut. Four members preferred no change. This close vote shows that the members face a hard task. They try to weigh mixed signals from the UK economy.

Economic Context: Inflation, Jobs, and Growth

• Inflation: The Consumer Price Index went up from 3.4% in May to 3.6% in June. Prices stay above the bank’s 2% goal.
• Labor Market: The number of paid workers fell in seven of the last eight months. Unemployment edged up this year.
• Economic Growth: The nation’s gross domestic product fell by 0.1% in May. The small fall shows weak growth.

Economists point to the labor market as a key factor. They see no single sign of a sharp job loss. Most job weakness appears in the hospitality field. That sector feels the effect of higher tax on wages and worker pay rolls.

Expert Forecasts on Future Rate Movements

Economists mostly see more rate cuts in the coming months.

• Jack Meaning, chief UK economist at Barclays, sees further quarter-point cuts. He thinks the Bank Rate may fall to 3.5% by February 2026.
• Ashley Webb, a UK economist at Capital Economics, expects even deeper cuts. She thinks rates could drop to 3.0% by 2026. Webb notes that as the labor market softens, wage growth and prices may slow to a 2% level.

Challenges Behind the Decision

The MPC looked at stubborn inflation and soft signals in jobs.
• The inflation numbers stay high and do not move quickly.
• Job numbers show slow decline, especially in sectors hit by new taxes and policy moves.
• Though fewer jobs are seen, the decline is not sharp enough to give a clear signal.

Summary

The Bank of England cut rates to 4% to push for growth amid steady inflation and a cooling jobs market. The close vote shows deep debate. Future data and bank talks will help us see how this balancing act moves on in the coming months.

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Trump’s Tariff Playbook Comes with a Baseball Twist

U.S. President Donald Trump spoke on CNBC. In his talk, he mixed trade talk with a baseball image. He compared global trade funds to the bonus a baseball player might get when signing with a team. Trump tied big money from trade deals to a familiar sports idea.

Tariffs, Trade Deals, & Baseball Bonuses

On CNBC’s Squawk Box this Tuesday, Trump noted large sums from recent trade deals with Europe and Japan. He spoke in short, clear phrases that link each idea tightly:

"We’re taking in trillions of dollars… people love the tariffs, they love the trade deals, and they love that foreign countries are not ripping us off anymore."

He named Japan next. For Japan, he explained that the U.S. would see about $550 billion in funds. He drew a direct link to a baseball bonus:

"If you look at Japan, we’re taking in $550 billion, and that’s like a signing bonus that a baseball player would get. He would get slightly less than that… He would get a million dollars, or $2 million or $20 million, or whatever they give today."

Trump made sure his words tied the investment to American control:

"So I got a signing bonus from Japan of $550 billion. That’s our money. It’s our money to invest, as we like."

European Union’s Commitment

The European trade deal shows similar connections. The agreement cuts import rates to 15% and sets up $750 billion in American energy sales by 2028. The EU also set aside $600 billion for new spending in the U.S. When asked for details, Trump stated:

"The details are $600 billion to invest in anything I want, anything, I can do anything I want with it."

He then tied these funds with tariff moves:

"Well, then they pay tariffs at 35%. No, no. They brought down their tariffs."

When others asked why the EU had a lower tariff, he said simply:

"Because [the EU] gave me $600 billion. And that’s a gift — that’s not a loan. There’s nothing to pay back. They gave us $600 billion that we can invest in anything we want."

Strategic Industrial Revitalization

The White House has said the funds target key sectors that revive America’s core industries. The focus connects clearly with several building blocks:

• Energy infrastructure and production
• Semiconductor making
• Essential minerals mining
• Drug and medical production
• Both commercial and defense ship building

These steps tie U.S. efforts to lower foreign import needs and grow nearby manufacturing.

A Deal-Maker’s Vocabulary

Trump uses plain language shaped by his background in real estate and deal-making. His style uses clear, short links between words. His baseball “signing bonus” image makes big numbers and trade ideas feel close and clear.

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Watch the full CNBC interview with President Donald Trump on Squawk Box for more on his trade path and future money moves.

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Summary:
President Donald Trump talked about huge funds from Japan and the EU. He called these funds baseball bonuses like those seen in pro sports. The trade deals aim to boost U.S. industry and cut reliance on foreign sources, with every link between words kept close for easier understanding.