The US and China will resume talks in Stockholm on Monday to try to resolve long-standing economic disputes at the heart of the trade war between the world's two leading economies, seeking to extend a three-month tariff truce and curb sharp tariff increases, UNN reports with reference to Reuters.
Details
China faces an August 12 deadline to reach a long-term tariff agreement with US President Donald Trump's administration, after Beijing and Washington reached preliminary agreements in May and June to end weeks of escalating tit-for-tat tariffs and rare earth mineral import cuts.
Without a deal, global supply chains could face new disruptions as US tariffs soar to triple-digit levels, leading to a bilateral trade embargo.
The Stockholm talks will take place immediately after Trump's largest trade deal with the EU was concluded on Sunday, concerning 15% tariffs on most goods exported from the EU to the US, including cars. The bloc will also purchase $750 billion in US energy and make $600 billion in US investments in the coming years.
A similar breakthrough in US-China talks is not expected, but trade analysts said another 90-day extension of the tariff and export control truce reached in mid-May is likely.
Extending this deadline will prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese leader Xi Jinping in late October or early November, the publication notes.
A US Treasury Department spokesman declined to comment on a South China Morning Post report citing unnamed sources who said both sides would refrain from imposing new tariffs or other steps that could escalate the trade war for another 90 days.
The Trump administration is reportedly ready to impose new sectoral tariffs affecting China within weeks, including on semiconductors, pharmaceuticals, shipping cranes, and other goods.
"We're very close to a deal with China. We actually made a deal with China, but we'll see how that goes," Trump told reporters on Sunday, before European Commission President Ursula von der Leyen concluded a tariff agreement with them.
On Monday, the Financial Times reported that the US had suspended restrictions on technology exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year.
The Commerce Department's Bureau of Industry and Security, which oversees export controls, has been instructed to avoid tough actions against China, the newspaper reported, citing current and former officials.
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