US, China to Start New Talks on Tariff Truce Extension, Easing Path for Trump-Xi Meeting

Top US and Chinese economic officials were set to resume talks in Stockholm on July 28 to try to tackle longstanding economic disputes at the center of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay.

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The negotiations were scheduled to begin on the afternoon of July 28 at Rosenbad, the Swedish prime minister's office in central Stockholm, a source said. Chinese and US national flags were raised at the building on the morning of July 28.

China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals.

Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo.

The Stockholm talks come hot on the heels of Mr. Trump's biggest trade deal yet with the European Union on July 27 for a 15 percent tariff on most EU goods exports to the US, including cars.

No similar breakthrough is expected in the US-China talks, but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely.

An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Mr. Trump and Chinese President Xi Jinping in late October or early November.

A US Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days.