Marketplace Morning Report Trying to keep a fragile trade truce alive
Oct 16, 2025
U.S. and Chinese officials are scrambling to keep a fragile trade truce alive amidst renewed tariff threats. Economic signals from non-governmental sources provide a unique glimpse into the current landscape. There's a discussion on the labor market's troubling yet stable state, along with the implications of opportunistic pricing on inflation. Meanwhile, countries are competing to carve out their roles in the AI revolution, with innovations like Argentina's makeshift AI hub and Kenyan startups navigating resource challenges.
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Fragile U.S.-China Tariff Truce
- The U.S.-China tariff truce is fragile and set to expire November 10th unless negotiations extend it.
- Treasury Secretary Scott Bessent said extension depends on China not imposing rare earth export controls.
Leverage And A Diplomatic Window
- U.S. officials say a meeting between President Trump and Xi Jinping could determine whether the truce extends.
- The U.S. signals leverage both through tariffs and by targeting products China needs.
Stagflationary Risks Emerging
- KPMG's Diane Swank says the labor market is weak but not collapsing while inflation pressures persist.
- She warns of stagflation signs from rising input and service-sector prices and opportunistic price-setting.