Top economic officials from the United States and China have gathered in Stockholm for a pivotal round of negotiations aimed at extending their ongoing tariff truce. With the August 12 deadline rapidly approaching, both sides are under significant pressure to strike a durable agreement that would avert the re-imposition of steep US tariffs on Chinese goods, which could otherwise disrupt global supply chains and escalate into a near trade embargo.
The negotiations come just one day after President Trump announced a new trade deal with the European Union, introducing a 15% tariff on most EU exports to the US, including automobiles, in exchange for significant European investments and energy purchases. While that agreement was seen as a breakthrough, analysts are more cautious about the prospects for immediate progress in Stockholm between the US and China.
Despite limited expectations for a comprehensive deal, experts widely anticipate a 90-day extension of the reciprocal tariff pause that has been in place since May. Such an extension would prevent new tariffs and escalation, providing critical breathing room for both economies and enabling officials to prepare for a possible meeting between Trump and Chinese President Xi Jinping later this year.
A US Treasury spokesperson refused to comment on reports that the two governments will refrain from introducing new punitive measures during this period. However, ongoing sectoral tariff threats—targeting Chinese semiconductors, pharmaceuticals, and more—remain in play, underlining the fragile nature of the current truce and the high stakes facing both sides as talks progress.