Chinese and U.S. trade officials were heading into a second day of meetings in the Swedish capital Tuesday to try to break a logjam over tariffs that have skewed the pivotal commercial ties between the world's two largest economies.

Oil extended gains on Tuesday, lifted by hopes of improved economic activity after the U.S.-EU trade deal, a potential U.S.-China tariff truce and President Donald Trump's shorter deadline for Russia to end the Ukraine war.

The stakes are high, with the United States and India counting on one another as indispensable partners in their competition with China.

As the two biggest economic targets in Donald Trump’s trade war, some analysts thought the European Union and China could move closer together and stake out common ground.

They’re talking right now, but the decision-maker, of course, is President Trump,” Lutnick said of the state of negotiations with China.

Asian shares are mostly lower as some of the euphoria fizzles out over a tariff deal with Japan as proposed recently by President Donald Trump

President Trump and European Commission President Ursula von der Leyen announced Sunday that the US and EU had agreed to the framework of a trade deal that included a baseline tariff rate of 15% on EU goods imported into the US.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden’s prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels.