US and China Expected to Extend Trade Truce for 90 Days

US and China are expected to extend their tariff truce by 90 days, according to the South China Morning Post. The pause was set to end on August 12, but the two countries will not impose additional tariffs on each other during the extension. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to hold talks in Stockholm this week, which may lead to a trade-truce extension.

Title: US and China Extend Tariff Truce by 90 Days

US and China are expected to extend their tariff truce by 90 days, according to the South China Morning Post. The pause was set to end on August 12, but the two countries will not impose additional tariffs on each other during the extension. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are scheduled to hold talks in Stockholm this week, which may lead to a trade-truce extension [1].

The Stockholm talks, led by Bessent and He, aim to address longstanding economic disputes and extend the current truce. The talks follow a series of negotiations in Geneva and London in May and June, which brought down retaliatory tariffs from triple-digit levels. However, the latest round of talks in Stockholm is expected to focus on broader economic issues, including China's state-led export-driven model and U.S. national security export controls on tech goods [2].

The extension of the tariff truce is seen as a positive development for global supply chains, which have been disrupted by the trade war. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100%. The extension provides more time for negotiations and may pave the way for a lasting deal between the two economic giants [3].

In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Xi [1].

The tariff extension comes as the U.S. and China have been negotiating trade deals with other countries. Trump has been successful in pressuring some trading partners, including Japan, Vietnam, and the Philippines, into deals accepting higher U.S. tariffs of 15% to 20%. However, the negotiations with India are still underway [2].

The U.S.-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets has proved to be an effective leverage point on U.S. industries. The Nvidia ban reversal and China's economic resilience have given Beijing more confidence at the negotiating table [3].

The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China. Bessent has already said he wants to work out an extension of the August 12 deadline to prevent tariffs snapping back to 145% on the U.S. side and 125% on the Chinese side. China is likely to request a reduction of multi-layered U.S. tariffs totaling 55% on most goods and further easing of U.S. high-tech export controls [1].

References:
[1] https://www.reuters.com/world/china/us-china-resume-tariff-talks-effort-extend-truce-2025-07-27/
[2] https://www.ndtvprofit.com/world/august-1-tariff-deadline-wont-be-extended-says-us-commerce-secretary
[3] https://www.cnn.com/2025/07/27/business/us-china-trade-talks-stockholm-intl-hnk