US-China trade talks intensify as August 12 tariff deadline nears

US President Donald Trump's August 12 deadline for a U.S.-China deal loomed over markets on Monday (August 11), with chip policy at the centre of the stand-off.

AI Brief

China faces a deadline to avoid new US tariffs over trade disputes, with talks ongoing to reach a deal.
Trump urged China to quadruple US soybean purchases, boosting prices but raising doubts about feasibility.
Analysts expect a deadline extension, but concerns remain over potential triple-digit tariffs and trade tensions.

China was initially singled out with tariffs exceeding 100% and has until Tuesday (August 12) to reach an agreement with the White House to keep U.S. President Donald Trump from reinstating additional import curbs imposed during tit-for-tat tariff exchanges in April and May.

Analysts said investors were expecting an extension of the deadline, with both sides seeking to close a deal that would avoid imposing triple-digit tariffs on each other's goods.

Trump said on August 6 he could announce further tariffs on China similar to the 25% duties announced earlier on India over its purchases of Russian oil.

Meanwhile, U.S. Commerce Secretary Howard Lutnick said he felt an agreement was possible, when asked about extending the tariff truce.

In a late night post on Truth Social, Trump on Sunday (August 10) urged China to quadruple its soybean purchases ahead of a key tariff truce deadline, sending Chicago soybean prices higher, though analysts were quick to question the feasibility of any such deal.

Trump said China was worried about a shortage of soybeans and he hoped it would quickly quadruple its soybean orders from the U.S.