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US and Chinese negotiators wrapped up two days of discussions in Stockholm on Tuesday, agreeing to seek an extension of their 90-day tariff truce. The meeting, which both sides described as “constructive”, aimed to ease tensions between the world’s two largest economies amid fears of renewed trade escalation.

US Treasury Secretary Scott Bessent downplayed speculation that President Donald Trump might block the truce, but emphasised that the decision rests solely with him, reported Reuters. “The meetings were very constructive,” Bessent told reporters. “It’s just that we haven’t given the signoff.”

Trump, who had just returned from Scotland after finalising a trade pact with the European Union, said Bessent briefed him on the talks, adding that his Treasury Secretary “felt very good about the meeting, better than he felt yesterday.”

Uncertainty Lingers as Tariff Deadline Nears

The tariff truce, due to expire on August 12, has prevented both nations from re-imposing triple-digit tariffs that could effectively trigger a trade embargo. US Trade Representative Jamieson Greer confirmed that another 90-day pause remains an option, but said, “the extension of the pause, he’ll decide,” referring to Trump.

China’s top trade envoy Li Chenggang stressed the importance of stable economic ties, saying both nations “will maintain active communication… and continue to promote the stable and healthy development of bilateral economic and trade relations.”

The talks may pave the way for a potential Trump-Xi Jinping meeting by year-end, even as Washington presses Beijing to move away from its state-driven, export-heavy economy. Analysts note that China’s leverage—particularly its control over rare earth exports—gives it bargaining power absent in US-EU talks.

With the International Monetary Fund warning that tariff hikes could threaten global growth, all eyes are now on Trump’s decision, which could define the next chapter of the US-China trade standoff.