US-China Trade Talks In Sweden May Yield 90-Day Tariff Truce Extension: Report
Tensions in the US-China trade war has escalated sharply since Donald Trump began his second presidential term.
A key meeting in Stockholm today between economic officials from the United States and China is expected to address the possibility of a truce extention from tariff war between the two countries, according to Reuters. China is currently facing a deadline of 12 August to reach a tariff agreement with the US, though it is widely anticipated that this deadline may be extended further by 90 days.
The talks are being led by US Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng, signalling high-level engagement on both sides.
Tensions in the US-China trade war have escalated sharply since Donald Trump began his second presidential term in January this year. Over recent months, not only China but several other countries have faced increased tariffs imposed by the Trump administration. In response, Beijing retaliated by imposing its own tariffs, resulting in a tit-for-tat trade conflict that has seen tariff rates soar beyond 100% in some sectors.
Previous meetings in Geneva and London during May and June aimed to halt the ongoing tariff escalation. Preliminary agreements were reached, raising hopes of a broader resolution. The current talks in Stockholm are expected to build on those earlier discussions. A 90-day extension would not only give both sides more time to negotiate a comprehensive deal but would also provide stability for global markets and the international supply chain, which has been significantly disrupted by the ongoing conflict.
In a statement given on July 27, just hours before announcing a separate agreement with the European Union, President Trump told the press, 'We're very close to a deal with China. We really sort of made a deal with China, but we'll see how it goes."
The EU, in a separate deal finalised on Sunday, agreed to a 15% tariff on exported goods and committed to purchasing $750 billion worth of energy from the US, alongside plans to invest $600 million over the coming years. While a similarly comprehensive package is not expected from the US-China negotiations, today's Stockholm meeting offers a promising sign of progress.
Should the extension be granted, it would allow time to arrange a face-to-face meeting between President Trump and Chinese President Xi Jinping, likely to take place in late October or early November.
In recent weeks, the Trump administration has also intensified trade talks with nations such as Japan, the United Kingdom, Indonesia, and Vietnam. Notably, Britain has successfully negotiated the lowest agreed tariff rate thus far, set at just 10%.
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