FX.co ★ U.S., China May Extend Tariff Truce Ahead of Third-Round Talks

The United States and China are likely to extend their tariff ceasefire by an additional three months, as reported by the South China Morning Post, which cites unnamed sources. According to one insider, during this extension period, neither country will implement new tariffs, effectively lengthening the current pause scheduled to conclude on August 12. This development precedes the third round of trade negotiations, which is set to commence later today in Stockholm, with U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng at the helm. The initial two rounds took place in Geneva, as both nations aim to avert a revival of hostilities in their protracted trade conflict. Bessent has indicated that he anticipates the extension of the truce to emerge as an outcome of this week's discussions. The talks will encompass a broader spectrum of issues beyond tariffs, including China's oil imports from Russia and Iran. The addition of these geopolitical matters to the agenda indicates a widening focus, underscoring growing U.S. worries about sanctions compliance and regional security dynamics.