Commerce Secretary Howard Lutnick said a 90-day extension of a trade truce with China was a likely outcome with negotiations between the two countries underway in Stockholm.

“Is that a likely outcome? Sure, it seems that way, but let’s leave it to President Trump to decide,” Lutnick said in an interview Monday on Fox News when asked about reports that the two nations were considering keeping their tariff agreement in place for another three months.

Lutnick’s comments followed the start of a new round of talks between the world’s two largest economies — this time in Stockholm, where Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent led the respective delegations. Earlier rounds saw Washington and Beijing agree to reduce tit-for-tat levies and ease export controls on certain technology and rare-earth minerals, easing tensions that had rattled financial markets as Trump moves to enact a sweeping tariff agenda.

But that agreement is set to expire on Aug. 12, leading to new discussions aimed at extending the truce and giving the US and China more time to address issues such as duties tied to fentanyl trafficking that President Donald Trump has levied and concerns about Chinese purchases of sanctioned Russian and Iranian oil. The two sides are slated to continue talks on Tuesday.

The China trade talks also come as the US gears up for a separate deadline for other trading partners, with so-called reciprocal tariffs slated to kick in on Aug. 1 against dozens of economies. Trump initially unveiled those rates in April — before pausing them after they sparked market turmoil and giving economies a change to negotiate lower duties with the US.

But that stretch has seen few deals actually materialize even after Trump extended the initial mid-July deadline to August. The president has begun issuing letters unilaterally setting rates for countries that were not able to negotiate a deal. Trump has said more letters are coming for more than 150 countries. Earlier Monday, he said that he was considering tariffs in the range of 15% to 20% for those remaining nations.

Lutnick said Trump is still weighing possible deals even with the deadline just days away.

“He’s done these big deals. He’s got really all the cards in front of him,” Lutnick said. “As he said, he’s going to decide what the tariff rate is, how much these countries are going to open their markets.”

“That’s what we’re going to do this week. We’re going to basically — he’s going to consider a few deals, of course he will, but basically what he’s going to do is he’s going to set the tariff rate for everybody and do that by the end of the week,” he added.

Trump has shown a willingness to lower rates for countries that come with fresh offers even after announcing their levies, including Japan which was told it faced a 25% rate for Aug. 1 but was able to reduce that to 15%, including for its crucial auto exports, in a deal the US president said would include the creation of a $550 billion fund to make investments in the US.

South Korea is also seeking a deal, with negotiators discussing with the creation of their own fund to invest in US projects in exchange for a lower tariff rate, including on auto exports.

Lutnick said that South Korean negotiators “flew to Scotland,” where Trump is on a trip, to meet with the Commerce secretary and US Trade Representative Jamieson Greer.

“I mean, think about how much they really, really want to get a deal done,” Lutnick said.