Trade Truce Talks: U.S. and China Seek 90-Day Extension

U.S. and Chinese officials have agreed to explore extending their 90-day tariff truce to ease tensions between the two tech-savvy economies. The discussions, held in Stockholm, aim to prevent an escalation in the trade war that could disrupt global supply chains and markets. President Trump holds the final decision on extending the truce.

In a bid to de-escalate growing trade tensions, U.S. and Chinese officials have agreed to explore extending their 90-day tariff truce during talks in Stockholm. Although no major breakthroughs were announced, the extension of the truce, set to expire on August 12, remains at President Trump's discretion.

After securing trade deals with Europe and Japan, the U.S. has been focusing on China, given its significant role in global rare earth markets. The stakes are high as both nations work to avoid the reimposition of triple-digit tariffs which could undermine global supply chains and financial stability.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer emphasized the importance of continued dialogue, with another meeting likely in 90 days. Meanwhile, economists highlight China's leverage in rare earths as central to its strong negotiating position, distinct from the U.S.-EU dynamic.

(With inputs from agencies.)