The United States and China are expected to extend their current tariff truce by an additional 90 days during trade talks set to begin Monday in Stockholm, Sweden.
According to a report published by MSN Money, citing sources from the South China Morning Post familiar with the negotiations, both Washington and Beijing are reportedly in agreement to prolong the pause on mutual tariffs, which is currently set to expire on August 12th.
The original 90-day truce was established on May 12th during negotiations in Geneva. At that time, the two sides agreed to temporarily halt steep tariffs—125% on Chinese goods and 145% on American exports—that had been imposed in April after U.S. President Donald Trump reignited a trade war with China on April 2nd.
Although trade tensions remain high—with both countries maintaining various export controls—the extension appears to be the only viable path forward. The United States has tightened restrictions on the export of microchips and advanced AI technologies to China, while Beijing has responded with limitations on the export of rare earth minerals critical to key U.S. industries.
Given the fragile economic conditions in both countries and the geopolitical backdrop, a comprehensive trade agreement appears unlikely. Still, both parties are reportedly keen to avoid a repeat of the tariff escalation witnessed earlier in the year, making the 90-day extension the most probable outcome.
Monday’s meeting in Stockholm marks the third round of negotiations. The first took place in May in Geneva, followed by a second meeting in June in London, where the U.S. successfully negotiated a slight easing of China’s rare earth export controls.
The talks also come as the Trump administration’s broader economic strategy faces scrutiny. In recent weeks, President Trump issued a 50-day ultimatum to Russia, demanding an end to the war in Ukraine by September 2nd or risk a sweeping 100% tariff on any country purchasing Russian energy—including China.
However, the White House has since appeared to backtrack on the scope and enforceability of the threat. Trump has publicly stated he "reserves the right" to decide whether to impose the tariffs, and analysts note that the administration appears reluctant to reignite a full-scale trade war with China, making the implementation of the ultimatum increasingly unlikely.