A tariff truce between Beijing and Washington is set to expire on August 12, but the Trump administration has hinted the deadline may be extended. If it is not, U.S. tariffs on Chinese goods will shoot up to 145%, with Chinese tariffs on U.S. goods set to hit 125%.

While the US and China slapped escalating tariffs on each other’s products this year – reaching prohibitive triple-digit levels and snarling trade – both countries in May agreed to temporarily lower these levels. But their 90-day halt in steeper levies is due to expire Tuesday, with all eyes now on a path forward.

The U.S. dollar stabilised on Monday after last week's losses, as markets await Tuesday's key U.S. CPI report for July and focus on developments in trade talks between Washington and Beijing ahead of a deadline to avoid the imposition of higher tariffs.