The United States and China are set to hold a new round of high-stakes trade talks in Stockholm next week, with both sides aiming to extend a crucial tariff truce before the August deadline. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will lead the negotiations, which may also address broader issues such as China's purchases of Russian and Iranian oil. The Trump administration has signaled flexibility on the August 1 tariff deadline, but is using the threat of higher tariffs as leverage to secure better terms. Meanwhile, the US is striking separate trade deals with other countries, but the outcome of the US-China talks remains the key focus for global markets. The talks are seen as a catalyst for market optimism, but uncertainty remains high as the deadline approaches.
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