Stockholm: The US and China are set to commence a new round of talks on Monday amid rising expectations that the two largest global economies might agree to extend their current trade war truce by 90 days.
According to BBC, the meetings in Sweden will be led by US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. These discussions follow US President Donald Trump’s recent announcement of a framework tariffs deal with the European Union, signaling a potential easing of international trade tensions.
The existing 90-day truce, which temporarily reduced tariffs between the US and China, is scheduled to conclude on August 12. However, the South China Morning Post reported, citing sources from both nations, that there is a strong likelihood the truce will be extended by another three months.
The Financial Times has also noted that the US has paused its restrictions on technology exports to China, a move aimed at fostering a conducive environment for the talks and facilitating a potential meeting between President Trump and Chinese President Xi Jinping later this year. Technology exports, especially AI chips, have been a focal point of the trade dispute due to US security concerns over their potential military applications in China.
Efforts to reach similar agreements have been observed in recent weeks, with the US securing trade deals with both the EU and Japan. President Trump and European Commission President Ursula von der Leyen announced a new trade agreement framework on Sunday, resolving a prolonged standoff between the two economic powerhouses. Additionally, a significant trade agreement with Tokyo was announced, involving a $550 billion Japanese investment in the US and a reduced tariff rate on Japanese goods.
Further tariff arrangements have been made with the UK, Indonesia, and Vietnam, with Britain negotiating the lowest US tariff rate of 10%. Although no major breakthroughs are anticipated from this week’s US-China talks, the prospect of extending the trade war truce offers hope for stability in global trade, avoiding the disruption of fresh tariffs.