In Search of Harmony: U.S. and China Talk Toward Trade Truce

U.S. and Chinese officials wrapped up two days of negotiations in Stockholm on Tuesday, focusing on longstanding economic disagreements amid escalating trade tensions. Although neither side reported any significant breakthroughs, China's top trade negotiator Li Chenggang stated that both countries agreed to work towards extending a 90-day tariff truce established in mid-May.

Potential discussions between U.S. President Donald Trump and Chinese President Xi Jinping could take place later this year, though official confirmations remain absent. Despite Trump's successful trade negotiations with the European Union, Japan, and others, China's powerful economy and control over global rare earth supplies add layers of complexity to these bilateral talks.

Both nations stepped back from imposing triple-digit tariffs in May, avoiding a near trade embargo. However, global financial markets and supply chains could still face disruption without an agreement. Highlighting the urgency, the International Monetary Fund increased its global growth outlook but warned of heightened risks from potential tariff hikes.

(With inputs from agencies.)