90-Day US-China Tariff Truce Ending Soon, Raising Risks of Higher Tariffs and Market Uncertainty

A 90-day truce on escalating tariffs between the US and China, established in May to facilitate trade negotiations, is set to expire, with no clear indication from the US administration on extension. The impending deadline raises the prospect of reinstating higher tariffs on Chinese imports, impacting global markets and multinational corporations. Semiconductor companies reportedly agreed to remit 15 percent of revenues from AI-related chip sales to the US government, reflecting intensified regulatory scrutiny. The trade tensions coincide with fluctuating global market indices and ongoing geopolitical developments, including anticipated discussions between the US and Russia. The trade dispute's potential effects on US inflation, Federal Reserve policies, and corporate earnings remain central concerns for investors and policymakers.