• US Treasury Secretary indicated a potential breakthrough in trade negotiations with China.
• Mixed messages from the White House raise questions about tariff extensions.
• Deadline of August 12 looms for finalizing a comprehensive tariff agreement.
• China's officials assert progress while US leaders remain cautious.
• American trade deficit with China could decrease by $5 billion this year.

US Treasury Secretary Scott Bessent expressed optimism regarding trade negotiations with China, stating that “this week’s negotiations in Stockholm have advanced our talks, and I believe that we have the makings of a deal that will benefit both of our great nations,” according to Channel News Asia, SCMP, Reuters, and SCMP.

However, despite this optimism, the Trump administration has sent mixed messages about the possibility of extending the current tariff pause with China. White House press secretary Karoline Leavitt stated, “I don’t think so,” when directly asked about the extension during a press briefing. This contrasts with sentiments from Chinese officials, who suggest that agreements may be closer than reported, according to Channel News Asia and Reuters.

Trump is facing a critical deadline of August 12 for finalizing any potential deal; failure to reach an agreement could lead to new tariffs. Bessent acknowledged that while progress has been made, the deal is “not 100% done” and indicated the US negotiators had significant discussions, pushing back during the negotiations, as reported by SCMP and Reuters.