By Anita Hamilton and Brian Swint

President Donald Trump told reporters Monday morning that "we'll see what happens" when asked whether he will give China another extension to work out a deal on trade.

"We've been dealing very nicely with China as you probably have heard. They have tremendous tariffs that they're paying to the United States of America," Trump added.

Since U.S. and Chinese officials met in Geneva in May, tariffs on most Chinese imports have been about 30%, down from as much as 145%. Those rates are set to rise another 34% on Tuesday if no new extension is granted. At the most recent round of U.S.-China trade talks in Stockholm, officials concluded with a willingness to extend the deadline, but Trump had to approve the idea.

Investors appear to be expecting another extension -- anything other than that could be a shock. The Nasdaq notched a record high on Friday, bolstered by the artificial intelligence boom. High valuations could make the market vulnerable to a pullback.

Nivida and AMD to Pay U.S. a Share of Chip Sales to China

Separately, semiconductor makers Nvidia and AMD have agreed to pay the U.S. government 15% of revenues from certain chip sales to China. Trump confirmed Monday that Nvidia will pay the U.S. 15% of its proceeds from Chinese sales of its H20 chip. He didn't specifically address the deal with AMD, which the The Wall Street Journal reported, citing people familiar with the situation.

The arrangement shows how Trump is squeezing both ends of international trade when it comes to technology, using the threat of sky-high tariffs to get concessions from China on rare earth minerals and forcing companies to pay extra taxes in exchange for the right to sell goods to China.

Late Sunday, Trump posted on his Truth Social site that China is worried about a soybean shortage and suggested the country should increase its orders from U.S. producers.

Goldman Says Consumers Will Soon Feel More Pain.

Meanwhile, Trump's new tariff regime is having an effect on the economy. Strategists at Goldman Sachs led by Jan Hatzius said that U.S. consumers had only absorbed 22% of the tariff costs through June, but that their share would soon rise to 67% if recent tariffs follow the same pattern as earlier ones. U.S. businesses have absorbed more than half of the costs so far, but that share is set to drop to less than 10%, they said in a note published Sunday.

Finally, foreign exporters have absorbed 14% of the tariff costs so far but that could rise to 25%, they added.

Write to Anita Hamilton at anita.hamilton@barrons.com and Brian Swint at brian.swint@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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August 11, 2025 12:17 ET (16:17 GMT)

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