US, China Resume Talks Expected to Extend Tariff Truce Three Months

U.S. and Chinese officials are engaged in talks aimed at extending a tariff truce for an additional three months, with a critical deadline set for August 12, after which tariffs could sharply increase, potentially disrupting global supply chains. The negotiations, held in Stockholm, focus on preventing new tariffs and avoiding escalation in the ongoing trade war, though no major breakthroughs are expected in this round. President Donald Trump has expressed optimism about nearing a deal with China, while also securing a significant trade agreement with the European Union that imposes a 15% tariff on many EU exports to the U.S. and includes substantial American investments and energy purchases by the EU. Key issues on the table include tariffs related to fentanyl, concerns over China’s market openness, and broader economic disputes, with further ambitious trade discussions anticipated in the future. The talks are seen as a step toward potentially arranging a meeting between Trump and Chinese President Xi Jinping later in the year to solidify a longer-term agreement. Both countries appear committed to maintaining the truce to stabilize relations and avoid renewed tariff escalations.