FX.co ★ US-China Mull Tariff Truce Extension Ahead of Deadline

The United States and China are engaged in ongoing discussions to preserve a tariff truce, which is set to expire in the next two weeks. According to Treasury Secretary Scott Bessent, President Trump will ultimately decide whether to extend this agreement. The recent dialogue in Stockholm marked the third round of negotiations in less than three months. These talks concluded ahead of the August 12 deadline for resolving differences during a 90-day suspension of significant tariffs, which had posed a threat to trade between the two largest global economies. Bessent mentioned that extending the truce for another 90 days remains a possibility. "A few technical details still need to be worked out," he commented following the two-day discussions with officials led by China's Vice-Premier He Lifeng. Meanwhile, Chinese negotiator Li Chenggang indicated that both parties agreed to honor the truce, describing the negotiations as "candid, in-depth, and focused on ensuring ongoing close communication," though he did not specify a timeline.