US-China talks to restart as hopes grow for trade war truce extension

The US and China are attributable to begin a contemporary spherical of talks on Monday as expectations develop that the world’s two greatest economies may agree a 90-day extension to their commerce battle truce.The conferences in Sweden – led on Washington’s facet by Treasury Secretary Scott Bessent and for Beijing by Vice Premier He Lifeng – come hours after US President Donald Trump introduced a framework tariffs cope with the European Union.The present 90-day truce between the US and China – which noticed the 2 international locations briefly reducing tariffs on one another – is about to finish on 12 August.Since Trump returned to the White Home in January, the US and China had raised import levies on one another to greater than 100%.The present 90-day tariffs pause got here after high officers from the US and China met in Geneva and London earlier this 12 months.Final week, Bessent mentioned talks with China had been in “an excellent place” and instructed the brand new spherical of talks may lead to a second truce.On Monday, citing sources on either side, the Hong Kong-based South China Morning Put up reported that the US and China are anticipated to increase the truce by one other three months.The BBC has contacted the Chinese language embassy within the US and the US Treasury Division for remark.The most recent US-China talks come after Washington struck offers with each the EU and Japan within the final week.On Sunday, Trump and European Fee President Ursula von der Leyen introduced a commerce settlement framework.It ended a months-long standoff between two of the world’s greatest financial companions.Final week, Trump mentioned Washington had agreed a “large” commerce cope with Tokyo.Underneath the settlement, Japan would make investments $550bn (£407bn) within the US whereas its items bought to America could be taxed at 15% after they attain the nation – under the 25% tariff Trump had threatened.The US has additionally struck tariffs offers with the UK, Indonesia and Vietnam.At 10%, Britain has negotiated the bottom US tariff price to this point.No comparable breakthrough is anticipated from the US-China talks this week however, with expectations of an extension to their truce, there are hopes that world commerce won’t be hit by contemporary tariffs disruption.