Stockholm. The United States and China have agreed to work on extending a key tariff pause beyond an August 12 deadline, following two days of trade negotiations in Stockholm aimed at defusing commercial tensions between the world’s two largest economies.

China’s lead negotiator, Vice Premier He Lifeng, described the discussions as “in-depth, candid and constructive,” adding that both sides agreed to continue efforts toward a 90-day extension of the current truce. The US, however, said that while the extension was discussed, no final decision was made.

“A stable, healthy and sustainable China-US economic and trade relationship not only benefits both countries but also contributes to global economic growth,” He said in a statement from China’s Ministry of Commerce.

US Treasury Secretary Scott Bessent, who led the American delegation alongside US Trade Representative Jamieson Greer, said the talks covered a wide range of issues, including China’s purchases of Iranian oil, the transfer of dual-use technologies to Russia, and industrial overcapacity.

“We just need to de-risk in certain strategic sectors — rare earths, semiconductors, and medicines,” Bessent told reporters, underscoring US priorities like reviving domestic manufacturing and securing agricultural and energy purchase agreements.

The Stockholm meeting marked the latest effort to resolve lingering tariff disputes. Previous rounds in Geneva and London focused on specific flashpoints, including US export controls and China's grip on critical mineral supplies. The current tariff levels stand at 30 percent for US duties on Chinese goods and 10 percent on Chinese tariffs targeting US products — a significant drop from earlier threats of triple-digit rates.

Talks in Stockholm opened Monday behind closed doors at the Swedish prime minister’s office and concluded Tuesday with both delegations expressing willingness to maintain open channels. Bessent described the tone as “very constructive,” while Chinese officials confirmed the two sides would remain in close contact on trade matters.

The negotiations come amid speculation over a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping, which Trump said could happen “before the end of the year.” However, Bessent clarified that a summit was not discussed in Stockholm.

Greer added that the team would brief the president in Washington before making any formal decisions on extending the tariff pause. “We’ll talk to the president about it and see whether that’s something he wants to do,” he said.

Trade analysts suggest an extension would be the low-hanging fruit, but caution that Beijing, emboldened by past experience, is unlikely to agree to any deal perceived as one-sided.

“The Chinese are coming to the table with leverage and lessons learned,” said Wendy Cutler, a former U.S. trade negotiator now with the Asia Society Policy Institute.

Despite uncertainties, both sides left Stockholm with a sense of cautious optimism. American and Chinese flags lined the waterfront outside the Swedish prime minister’s office, drawing curious onlookers as security cordons kept crowds at bay, a fitting symbol of high-stakes diplomacy in progress.