The United States and China agreed to extend their trade truce for an additional 90 days through the end of June 2026, as both sides make progress toward a broader bilateral trade framework. The extension averts a fresh round of tariff escalation that had been feared by global markets and supply chain operators. Under the truce, existing tariffs remain in place but no new levies will be imposed.
Senior trade negotiators from both countries met in Geneva for the third time this year and reported productive discussions on issues including market access for US agricultural products, technology transfer protocols and China's compliance with phase one commitments. However, sticking points remain on semiconductor export controls and China's subsidies to domestic industries including EVs and batteries.
For India, the prolonged US-China trade truce creates a complex dynamic. On one hand, reduced trade war tensions support global growth and commodity price stability. On the other hand, a full trade deal between the US and China could redirect some of the supply chain diversification momentum away from India. New Delhi is closely monitoring negotiations as it finalises its own trade engagement strategy with Washington.
