China, U.S. to extend tariff pause at Sweden talks by another 90 days: Report

Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday (July 28, 2025), the South China Morning Post (SCMP) reported on Sunday, citing people familiar with the matter.

During the expected 90-day extension, the U.S. and China will agree not to introduce new tariffs or take other actions that could further escalate the trade war, the report said.

While the earlier discussions in Geneva and London focused on “de-escalation”, the latest meeting the Chinese delegation will also press Mr. Trump’s trade team on fentanyl-related tariffs, the report further said, citing three sources familiar with the matter.

Reuters could not immediately verify the report. The White House did not immediately respond to requests for comment.

The third round of U.S.-China talks is set to be held in Stockholm on Monday to tackle longstanding economic disputes at the centre of the countries’ trade war.

In a critical turn of events, the United States and China agreed to extend their tariff moratorium for an additional 90 days, following a recent round of trade talks in Stockholm, Sweden. This fragile ceasefire — now set to last until November 10, 2025 — unveils a delicate balancing act fraught with strategic implications for both nations and global markets.

From Stockholm with Caution

The latest talks, held late July in Stockholm, centered around a mutual commitment to stall further tariff escalations. The existing framework — U.S. tariffs maintained at 30% on Chinese goods, with China’s reciprocal 10% duties on U.S. imports — was effectively frozen another 90 days WMORBusiness StandardeuronewsSouth China Morning PostchinadailyhkThe Guardian.

Both sides described the dialogues as “constructive,” “in‑depth,” and “candid,” signaling ongoing “comprehensive” engagement on trade matters WMORMoneycontroleuronewsSouth China Morning PostThe GuardianAxios. While precise implementation details of the extension remain vague, President Trump formalized the move through an executive order, officially postponing the tariff deadline until November 10 The GuardianAxiosAP News.

Diplomacy Through Delay

U.S. Treasury Secretary Scott Bessent confirmed the extension, noting progress but signaling that final approval from President Trump was still pending at the time of reporting euronewsReuters. He framed the dialogue as “very fulsome,” highlighting discussion areas including risks tied to rare earths, semiconductors, and medicine supply chains — all key to “de-risking” strategic sectors euronewsMarketBeatReuters.

Notably, the talks broached broader issues, ranging from market access for U.S. firms to China’s involvement in fentanyl precursor shipments, oil purchases from Russia and Iran, and U.S. tech export controls Business StandardIndia TV NewsThe Times of IndiaMarketBeatThe Washington Post.

Why Another Pause Matters

1. Temporarily Eases Tensions: The extension averts the risk of an imminent trade war by delaying tariff hikes, offering businesses a reprieve. Market participants greeted the news as a welcome measure that staved off immediate volatility AxiosAP News.

2. Signals Pragmatic Engagement: Trade officials from the U.S. and China appear willing to maintain a working dialogue — keeping channels open even as the underlying trade war persists South China Morning PostReuters.

3. Preps Ground for Summit Diplomacy: The pause buys time for potential high-level meetings, including discussions about a Trump–Xi summit later this year to formalize longer-term trade compromises WMORThe Indian ExpressReuters.

Cautious Optimism Among Analysts

Trade experts caution that rolling over tariff levels is the easy part. As Wendy Cutler — former U.S. trade negotiator — warned, Beijing has grown more confident and is unlikely to consent to a one-sided deal Business StandardSouth China Morning Post.

Meanwhile, China remains firm on seeking clarity about the rationale behind certain U.S. tariffs—especially those tied to the fentanyl crisis—before considering any easing South China Morning PostThe Indian Express.

Conclusion: Patience, But Not Peace

The 90-day extension agreed upon in Stockholm buys much-needed breathing space amid a fraught trade landscape. It tempers immediate escalation, provides a runway for negotiation, and reflects mutual recognition that economic upheaval benefits neither party.

Yet, with core disputes on intellectual property, forced labor, subsidy regimes, and strategic supply chains unresolved, this is more a tactical pause than a path to truce. As winter approaches, all eyes turn to both capitals—and possibly a Beijing–Washington summit—for clarity on whether diplomacy evolves or derails.