The United States and China have opened a new round of negotiations in Sweden, raising hopes that the two largest economies could prolong their 90-day trade war pause. The discussions are being led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
The current truce, which temporarily lowered tariffs imposed by both sides, expires on August 12. Since January, Washington and Beijing have raised import duties on each other to more than 100%.
Last week, Bessent said the talks were in “a very good place,” hinting that another three-month extension was possible. The South China Morning Post reported that both governments are expected to agree on a second pause.
The negotiations come shortly after President Donald Trump announced a framework trade deal with the European Union and finalized a “massive” agreement with Japan. Washington has also reached separate tariff arrangements with the UK, Indonesia, and Vietnam.
Technology exports remain a central issue in the U.S.-China dispute, especially high-end chips used in artificial intelligence. According to the Financial Times, Washington has temporarily frozen restrictions on these exports to avoid disrupting talks and to help Trump secure a meeting with Chinese President Xi Jinping later this year.
While no major breakthrough is expected this week, analysts say extending the truce could help stabilize global trade and prevent another wave of tariffs.
Related Readings:
