U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world's two biggest economies that threatens global growth.

No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a trade truce that expires on August 12 or potentially let tariffs shoot back up to triple-digit figures. But U.S. Treasury Secretary Scott Bessent tamped down any expectation of Trump rejecting the extension.

"The meetings were very constructive," Bessent told reporters after the meetings wrapped up. "It's just that we haven't given the signoff."

As Trump returned to Washington after visiting Scotland, where he inked a trade deal with the European Union, he said Bessent had just briefed him on the China talks.

"He felt very good about the meeting, better than he felt yesterday," Trump told reporters aboard Air Force One.

After months of threatening high tariffs on trading partners, Trump has secured trade pacts with the EU, Japan, Indonesia and others, but China's powerhouse economy and grip on global rare earth flows make these talks particularly complex.

Both sides in May walked back from imposing triple-digit tariffs on each other in what would have amounted to a bilateral trade embargo. But global supply chains and financial markets could face renewed turmoil without an agreement.

Bessent told reporters he expects to meet with Trump on Wednesday after both have returned to Washington, and the president would have the final say on any extension.

Another 90-day extension is one option, U.S. Trade Representative Jamieson Greer added.

"We had constructive meetings for sure, to go back with the positive report. But the extension of the pause, he'll decide," Greer said after talks at Rosenbad, the Swedish prime minister's office in central Stockholm.

TRUMP SEES MEETING WITH XI BY YEAR-END

Bessent said there would likely be another meeting between U.S. and Chinese officials in about 90 days, and the agreements on the flow of Chinese rare earths were becoming more refined after previous talks in Geneva and London.

"There was good personal interaction being built up, good, mutual respect. I think we understand their agenda much better," he said.

Underlining the stakes, the International Monetary Fund on Tuesday raised its global growth forecast but flagged a potential rebound in tariff rates as a major risk.

China's top trade negotiator Li Chenggang said both sides fully recognized the importance of maintaining a stable and sound economic and trade relationship.

"The Chinese and U.S. economic and trade teams will maintain active communication, exchange views on economic and trade issues in a timely manner, and continue to promote the stable and healthy development of bilateral economic and trade relations," said Li.

Source: Investing.com