AsianFin -- Senior U.S. and Chinese economic officials are set to meet in Stockholm on Monday to restart negotiations aimed at extending their tariff truce by another three months, easing the path for a potential meeting between U.S. President Donald Trump and Chinese leader Xi Jinping.

The talks come as China faces a looming August 12 deadline to reach a lasting tariff agreement with the Trump administration. Preliminary accords struck in May and June temporarily halted a rapid escalation in tariffs and a suspension of rare earth exports, but a long-term deal remains elusive.

Failure to reach an agreement could see tariffs rebound to triple-digit levels, threatening to upend global supply chains and effectively freeze bilateral trade between the world’s two largest economies.