Trade Truce Extension: U.S. and China Seek Calm Amid Tariff Tensions

In an effort to ease trade tensions, U.S. and Chinese officials have decided to seek an extension of their 90-day tariff truce. The talks, held in Stockholm, were described by both sides as constructive, although no major breakthroughs were revealed. The expiration of the current truce poses a significant decision point for President Trump, who must decide on the continuation or escalation of tariffs set to expire on August 12.

Notably, U.S. Treasury Secretary Scott Bessent expressed optimism about the outcome of the talks, downplaying concerns about Trump rejecting an extension. Meanwhile, after securing trade agreements with multiple nations, including the European Union and Japan, Trump now confronts the intricate challenge of navigating the U.S.-China trade relationship—complicated by China's significant economic influence and control over rare earth materials.

The meetings in Stockholm are seen as a precursor to a potential future meeting between President Trump and Chinese President Xi Jinping. Both sides stress the importance of maintaining a stable trade relationship, with China's top negotiator emphasizing the mutual benefits of cooperation and the risks of conflict. The impact of the talks on global growth and markets remains a closely watched issue.

(With inputs from agencies.)