U.S. and China Likely to Extend Tariff Truce Amid Stockholm Trade Talks

The United States and China are reportedly preparing to extend their existing tariff truce by 90 days as high-level trade talks resume Monday in Stockholm, according to the South China Morning Post (SCMP). The temporary suspension of most tariffs, originally agreed in May, is due to expire on August 12.

Sources cited by SCMP indicated that the third round of negotiations will focus on clarifying positions on unresolved issues, including Washington’s concerns over China’s industrial overcapacity. The discussions are not expected to produce immediate breakthroughs but aim to prevent escalation. During the extension period, both nations are unlikely to impose new tariffs or intensify the ongoing trade conflict.

Beijing is also expected to seek further details from Washington regarding the 20% tariffs placed on Chinese goods in March over fentanyl-related concerns. The talks come amid cautious optimism, with U.S. President Donald Trump stating on Sunday that the two countries are “very close” to a deal, though he offered no specifics.

China’s state-run People’s Daily echoed this sentiment in an editorial, reaffirming Beijing’s commitment to resolving trade disputes through equal dialogue and mutual respect.

The potential extension signals a continued effort by the world’s two largest economies to stabilize trade relations and provide markets with temporary relief amid lingering global economic uncertainty.