Officials are meeting in Sweden for their third round of talks in as many months, ahead of an Aug. 12 deadline, to try to avoid a flare-up in trade tensions.

Senior U.S. and Chinese negotiators meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce keeping sharply higher tariffs at bay.

The United States and China are reportedly preparing to extend their existing tariff truce by 90 days as high-level trade talks resume Monday in Stockholm, according to the South China Morning Post (SCMP).