The "deadline" for China-U.S. tariffs is approaching! U.S. Treasury Secretary: Don't worry, negotiations are progressing smoothly
As the 90-day tariff truce between China and the United States is set to expire on August 12, the market is paying attention to the possibility of a new round of trade friction. U.S. Treasury Secretary Becerra stated that investors need not worry excessively, noting that negotiations are progressing smoothly and sending a stabilizing signal to the market. He mentioned that the Trump administration has assured NVIDIA of issuing licenses to allow it to sell high-end graphics processors to Chinese companies. Although a formal agreement has yet to be reached, Becerra's optimistic remarks indicate a positive atmosphere in China-U.S. trade negotiations, and the market need not be tense due to the tariff "deadline."
According to the Zhitong Finance APP, as the 90-day tariff truce between China and the United States is set to expire on August 12, the market is concerned about whether a new round of trade friction will arise. However, U.S. Treasury Secretary Steven Mnuchin stated in an interview on Tuesday that investors need not overly worry about this "deadline."
"I tell market participants not to worry about August 12," Mnuchin said during the interview. He was referring to the expiration date of the 90-day tariff ceasefire agreement announced on May 12. As one of the key figures in the Trump administration's tariff negotiations, Mnuchin's remarks aim to send a stabilizing signal to the market.
The China-U.S. trade negotiations have long been viewed as a "barometer" on Wall Street, and investors are closely watching whether Trump will implement the high tariffs he previously threatened. Mnuchin's statement seems to inject a dose of "confidence" into the market.
In fact, the market has long been alert to Trump's "tariff rhetoric." Wall Street even jokingly refers to "TACO" (Trump Always Chickens Out) to describe this typical trend, where the market declines due to Trump's tariff threats but quickly rebounds because he fails to implement them.
On the eve of a new round of negotiations, both China and the U.S. have recently shown goodwill in several key areas and engaged in "chip exchanges." Mnuchin confirmed in the interview that the Trump administration has assured NVIDIA (NVDA.US) that it will grant licenses allowing the company to sell high-end graphics processors to Chinese firms. He said, "You can think of this as a chip we used in negotiations in Geneva and London. The whole process is like a puzzle. They have what we want, and we have what they want."
Although a formal agreement is still pending, Mnuchin's optimistic signals indicate that the current atmosphere of China-U.S. trade negotiations is positive, and the market may not need to be overly tense due to the tariff "deadline." Investors' attention will focus on the substantive progress of high-level consultations in the coming weeks and whether both sides can reach a more constructive long-term arrangement
