STOCKHOLM — After two days of high-level trade talks in Sweden’s capital, the United States and China have taken tentative steps toward extending their current tariff pause, signaling renewed efforts to stabilize economic relations between the world’s two largest economies.
Beijing’s top trade envoy, Li Chenggang, called the discussions “in-depth, candid and constructive,” confirming both countries agreed to work toward extending the current pause on new tariffs beyond the looming August 12 deadline. The U.S. side, while more cautious, confirmed the extension was discussed, but not yet finalized.
“Both sides recognize the importance of stable and healthy U.S.-China economic relations,” said Li, though he gave no details on how an extension might unfold.
U.S. Treasury Secretary Scott Bessent described the talks as “very fulsome,” noting they covered a range of sticking points, including:
China’s purchases of Iranian oil,
Alleged dual-use tech exports to Russia,
And overproduction in key manufacturing sectors.
Bessent emphasized Washington’s strategic goal of de-risking critical industries, restoring U.S. manufacturing, and reducing trade imbalances.
Behind Closed Doors in Stockholm
The talks began Monday with nearly five hours of private negotiations inside the office of Swedish Prime Minister Ulf Kristersson. Tuesday’s session followed a working breakfast with Kristersson, Bessent, and U.S. Trade Representative Jamieson Greer.
This latest round follows earlier U.S.-China negotiations in Geneva and London focused on export controls, tariffs exceeding 100%, and China's dominance in rare earth minerals — materials critical to modern electronics and defense.
Currently, U.S. tariffs on Chinese goods sit at 30%, while China has imposed 10% tariffs on American products. Without an agreement, rates could spike again post-August 12.
Trump-Xi Summit in the Works?
Fueling further speculation, President Donald Trump told reporters aboard Air Force One that a meeting with President Xi Jinping may happen before year’s end.
“I may go to China at Xi’s invitation,” Trump later posted on Truth Social, adding, “Otherwise, no interest!”
Though the summit wasn’t officially discussed in Stockholm, both sides acknowledged that their presidents want negotiations to continue.
Why This Matters
While the U.S. has reached tariff deals this year with allies like Britain, Japan, and the EU, China remains the most complex challenge. Trade negotiator Jamieson Greer called Beijing “pragmatic,” adding that regular engagement gives both sides a foundation for long-term solutions.
Markets are watching closely. The last major tariff standoff in April triggered global selloffs before both nations agreed to a 90-day tariff freeze in May. That pause is set to expire in less than two weeks.
“The easy part is extending current tariffs,” said Wendy Cutler of the Asia Society. “But Beijing has grown more confident and won’t accept a one-sided deal again.”
What’s Next
Bessent said both delegations agreed to maintain regular contact and work toward a longer-term economic framework. With tensions easing slightly, hopes are rising for a broader agreement — or at least a delay in further escalation.
As police cordoned off Stockholm’s waterfront and flags of the U.S. and China waved outside Sweden’s government headquarters, all eyes were on the quiet diplomacy unfolding inside.
Bottom line: With Trump weighing a China visit and negotiations ongoing, the next few weeks could define the future of U.S.-China trade — and global economic stability.