US, China likely to extend 90-day tariff freeze amid trade talks

Top US and Chinese economic officials are set to resume high-stakes trade talks in Stockholm on Monday, aiming to extend a temporary truce and avoid a new wave of tariffs that could disrupt global supply chains. The discussions, held at the Swedish prime minister’s office, follow months of escalating tensions and tentative progress, including preliminary deals in May and June to halt retaliatory tariffs and restrictions on critical exports like rare earths and high-end semiconductors.

The renewed dialogue comes just days after President Donald Trump struck a major trade deal with the European Union, agreeing to a 15% tariff on most EU goods. While no such breakthrough is expected with China, analysts say a 90-day extension of the current tariff and export control freeze is likely. This pause would help maintain diplomatic momentum and open the door to a potential Trump-Xi summit later this year, possibly in October or November.

With a looming August 12 deadline and new US tariffs on Chinese sectors like semiconductors and pharmaceuticals set to take effect within weeks, the Stockholm talks could prove decisive. Both sides appear keen to keep tensions in check as they consider a broader reset of economic ties through possible head-of-state engagement later in the year.