US, China Prepare Stockholm Talks to Extend Tariff Truce

U.S. and Chinese officials are preparing for high-level trade talks in Stockholm aimed at reducing tensions and potentially extending a temporary tariff de-escalation agreement set to expire in mid-August. The discussions will focus on China's heavy reliance on exports, particularly in industries like steel and electric vehicles, and the U.S. desire for China to boost domestic consumption while addressing concerns over its purchases of oil from Russia and Iran, which challenge American sanctions. Despite ongoing efforts by China to pivot towards a consumption-driven economy, structural reforms and demographic challenges complicate this transition. President Donald Trump announced that the U.S. is close to completing a trade deal with China and intends to establish straightforward tariffs for other trading partners, including the European Union, contingent on market openness. Both nations acknowledge the mutual benefits of their economic relationship, with substantial trade volumes and complementary industrial structures contributing to global economic stability. However, the fragile dynamics are underscored by differing approaches within the U.S. government and the need for sustained cooperation to foster a stable, healthy, and sustainable bilateral relationship.