China, US Extend Tariff Pause Another 90 Days

Ahead of trade talks in Stockholm that are set to begin tomorrow, The South China Morning Post reports that, according to sources close to the matter on both sides, the US and China are set to extend their tariff truced by another three months.

China and the United States agreed in May to remove most of the heavy tariffs levied on each other’s goods for 90 days while continuing trade negotiations.

That suspension is set to expire on August 12.

SCMP reports that one source said that, during the expected 90-day extension, the two nations will commit to not impose additional tariffs on each other, nor escalate the trade war by other means.

People’s Daily, the mouthpiece of China’s ruling Communist Party, said in an editorial on Sunday that Beijing was willing to work with Washington to make “substantive progress” in resolving issues during the coming trade talks in the Swedish capital.

“China has always maintained a constructive position and insisted on resolving issues through equal dialogue and consultation,” the newspaper said.

“It is willing to work with the US to take the economic and trade talks in Sweden as an opportunity to continuously enhance consensus, accumulate mutual trust, reduce misjudgments and strengthen cooperation.”

While analysts have welcomed the continuation of discussions, most do not expect any sweeping changes to emerge from the negotiations in Stockholm.

“Don’t hold your breath. I don’t think it’s going to be a breakthrough, but I hope I’m wrong,” Niklas Swanstrom, director of the Institute for Security and Development Policy, a think tank based in Stockholm, said ahead of the talks.