The United States and China have agreed to resume high-level trade negotiations next week, according to officials, in a fresh effort to slow a worsening trade dispute that has unsettled investors and global supply chains.

The talks come after another round of tariffs and export restrictions deepened friction between the world’s two largest economies. Both governments are under pressure to prevent the dispute from spilling further into technology, manufacturing, and consumer markets.

While the renewed dialogue suggests both sides want to lower the temperature, major disagreements remain over access to advanced semiconductors, industrial policy, and broader economic security concerns. Past rounds of negotiations have often produced limited progress before relations deteriorated again.

Markets are expected to watch the outcome closely, with any sign of compromise likely to be welcomed by businesses that have faced rising costs and uncertainty. Still, the path to a durable agreement remains unclear, and the talks are more likely to serve as a test of political will than a quick fix.