Shandong (JLC), August 14, 2025--China and the United States have reached an agreement to extend the suspension of tariffs for an additional 90 days starting from August 12, a move that is anticipated to enhance market sentiment, particularly within the crude oil sector.
On August 12, China and the U.S. issued the Joint Statement on China-US Economic and Trade Meeting in Stockholm. The U.S. pledged to continue adjusting its tariff measures on Chinese goods (including those from the Hong Kong and Macao Special Administrative Regions), extending the suspension of the 24% reciprocal tariffs for another 90 days starting from August 12. China will also maintain the suspension of its 24% retaliatory tariffs on U.S. goods and related non-tariff countermeasures for 90 days beginning August 12.
This move will help alleviate market pessimism. Analysts believe that the 90-day extension of the "tariff truce" between China and the U.S. signals a gradual shift in bilateral trade relations from the chaos earlier this year to a "phase of temporary easing." It also fosters a relatively positive atmosphere for the next stage of bilateral negotiations.
Since the beginning of this year, the U.S. tariff war has been a major factor keeping crude oil prices at relatively low levels following their sharp decline. The trade conflict has not only dampened market expectations for global economic growth but also significantly suppressed demand projections for basic energy resources. As a result, leading international energy agencies have repeatedly lowered their global oil demand forecasts for 2025 and 2026. Coupled with OPEC+'s continued production increases, these developments have further fueled expectations of a sustained crude oil supply glut.
The United States and China are currently the world's most significant economies, as well as the top two largest crude oil consumers. Additionally, the U.S. is the world's biggest crude oil producer. As such, trade disputes between the two nations undoubtedly exert a substantial impact on the global oil market. To date, China and the U.S. have engaged in two rounds of trade negotiations, each time postponing tariff implementation by 90 days. This pattern suggests that the tariff war will continue to influence the oil market throughout the remainder of this year and potentially into next year.
