The United States and China are expected to extend their current tariff truce by another 90 days as senior officials from both countries meet in Stockholm for a new round of trade negotiations. The talks aim to prevent the reimposition of higher tariffs and address longstanding economic disputes, with hopes of paving the way for a potential Trump-Xi summit later this year. Key issues on the table include China's export dependence, trade imbalances, and possibly its oil purchases from Russia and Iran. Both sides appear cautiously optimistic, with US Treasury Secretary Scott Bessent signaling that trade relations are in a 'good place' and that progress has been made. The outcome of these talks is seen as crucial for global supply chain stability and broader economic confidence.
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