Top U.S. and Chinese trade officials have concluded two days of negotiations in Stockholm, Sweden, with both sides describing the talks as “constructive” and affirming a mutual desire to extend their current 90-day tariff truce.
China’s trade negotiator Li Chenggang confirmed that Beijing and Washington have agreed to work toward preserving the truce, which is set to expire on August 12, amid concerns that its collapse could reignite tit-for-tat tariffs and economic disruption.
However, U.S. Treasury Secretary Scott Bessent emphasized that any extension would require approval from President Donald Trump, stating, “Nothing is agreed until we speak with President Trump.”
Background and Stakes
The temporary truce was brokered in May following a steep escalation in tariffs that saw:
- Chinese goods facing an additional 30% tariff.
- U.S. goods subjected to 10% retaliatory tariffs from China.
Without an extension, U.S. officials warn that tariff rates could “boomerang” back up, harming both economies.
Key Discussion Points
The two-day negotiations covered:
- Trade balances and implementation of previous agreements between Trump and President Xi Jinping.
- Rare earth minerals, seen as critical for high-tech industries like EVs and semiconductors.
- Export controls, particularly U.S. pressure on China to divest TikTok’s U.S. operations and increase exports of critical minerals.
- Geopolitical concerns, including China’s ties with Russia and Iran.
Bessent stated that while risks remain, the atmosphere was positive:
“The meetings were very constructive. We just haven’t given the sign-off.”
He added that the U.S. is not aiming for full economic separation, but seeks to “de-risk” key strategic sectors, including semiconductors, rare earths, and pharmaceuticals.
Looking Ahead
President Trump said he would be briefed further upon his return from Scotland, where he initially commented that “they had a very good meeting with China.”
U.S. Trade Representative Jamieson Greer noted that recent trade deals with Japan and the EU give Washington leverage, and the U.S. is on track to reduce its trade deficit with China by $50 billion this year.
Li Chenggang reaffirmed China’s commitment to a stable and sound economic relationship, suggesting that momentum may be building toward an agreement — pending presidential approval.
