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Boston Globe
15 hours ago
- Business
- Boston Globe
Top Chinese, US trade officials huddle in Sweden for second day of thorny talks over tariffs
The United States has struck deals over tariffs with some of its key trading partners — including Britain, Japan and the European Union — since President Donald Trump announced 'Liberation Day' tariffs against dozens of countries in April. China remains perhaps the biggest unresolved case. Advertisement 'The Chinese have been very pragmatic,' Greer said in comments posted on social media by his office late Monday. 'Obviously we've had a lot of tensions over the years. We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations.' 'Whether there will be a deal or not, I can't say,' Greer added in the clip posted on X from MSNBC's 'Morning Joe'. 'Whether there's room for an extension, I can't say at this point. But the conversations are constructive and they're going in the right direction.' Many analysts expect that the Stockholm talks, at a minimum, will result in an extension of current tariff levels that are far lower than the triple-digit percentage rates as the U.S.-China tariff tiff crescendoed in April, sending world markets into a temporary tailspin. Advertisement The two sides backed off the brink during bilateral talks in Geneva in May and agreed to a 90-day pause — which is set to end on Aug. 12 — of those sky-high levels. They currently stand at U.S. tariffs of 30% on Chinese goods, and China's 10% tariff on U.S. products. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology, like chips that help power artificial intelligence systems. Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against U.S. interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' On Monday, police have cordoned off a security zone along Stockholm's vast waterfront as rubbernecking tourists and locals sought a glimpse of the top-tier officials through a phalanx of TV news cameras lined up behind metal barriers. Flagpoles at the prime minister's office were festooned with the American and Chinese flags.
The Mainichi
a day ago
- Business
- The Mainichi
US-China tariff talks may provide clues on a possible Trump-Xi meeting
STOCKHOLM (AP) -- Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology -- like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. 'Large and confident partner' Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from "a large and confident partner that is more than willing to retaliate against U.S. interests." Rollover of tariff rates "should be the easy part," she said, warning that Beijing has learned lessons since the first Trump administration and "will not buy into a one-sided deal this time around." "Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum -- a difficult ask for Washington," she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. "Success is far from guaranteed," Cutler said. "There are numerous trip wires that can throw a wrench in this preparatory process." The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. Extending a 90-day pause The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the "consultations" would raise shared concerns through the principles of "mutual respect, peaceful coexistence and win-win cooperation." The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting "Liberation Day" tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries -- including some developing ones that depend on exports to the U.S. -- face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. Suggestion of stability On Friday, Trump told reporters that "we have the confines of a deal with China" -- just two days after Bessent told MSNBC that a "status quo" had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made -- including American -- goods. Other sticking points in the relationship include overcapacity in China -- by far the world's largest manufacturer -- and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Looking long-term Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because "a lot of the things that the U.S. wants, the Chinese want as well," Stein said. China, for example, is interested in buying U.S. soybeans, and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing -- which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
Boston Globe
a day ago
- Business
- Boston Globe
US-China tariff talks may provide clues on a possible Trump-Xi meeting
Analysts say the talks could set the stage for a possible meeting between President Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the United States; components of fentanyl made in China that reach US consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. Advertisement Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against US interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' Advertisement 'Beijing is more prepared and will insist on movement on US tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed,' Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The US-China trade talks are the third this year, nearly four months after Trump upended global trade with his The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, US tariffs have been lowered to 30 percent on Chinese goods, and China set a 10 percent tariff on US products. The Trump administration, which just completed a China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of US trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against Without an extension by Aug. 12, the tit-for-tat US-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the United States — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Advertisement Critics say Trump's tariffs penalize Americans by forcing US importers to shoulder the costs or pass them on to consumers through higher prices. On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the United States can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a Experts say long-term progress in the US-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Advertisement Sean Stein, president of the US-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the US wants, the Chinese want as well,' Stein said. China, for example, is interested in buying US soybeans, and aircraft and parts, and Chinese businesses are interested in investing in US manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil.
Yahoo
a day ago
- Business
- Yahoo
US and China to talk in Stockholm as trade truce expiration nears
When top US and Chinese officials meet in Stockholm on Monday, it's likely that they will agree to leave tariffs at the current levels, if they don't secure a more favourable framework. Analysts say the two sides are working to secure a more lasting trade deal ahead of a meeting between their presidents later this year. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are holding talks on Monday for the third time this year. This round of discussions is taking place in the Swedish capital, nearly four months after President Donald Trump upset global trade with his sweeping tariff proposal, including an import tax that shot up to 145% on Chinese goods. 'We have the confines of a deal with China,' Trump said on Friday. Bessent told MSNBC on Wednesday that the two countries had reached a 'status quo' after talks in Geneva and London, with the US taxing imported goods from China at 30% and China responding with a 10% tariff, on top of tariffs prior to the start of Trump's second term in office. 'Now we can move on to discussing other matters in terms of bringing the economic relationship into balance,' Bessent said. He was referring to the US running a $295.5 billion (€253.1bn) trade deficit last year. Washington is seeking an agreement that would enable it to export more to China and shift the Chinese economy more toward domestic consumer spending. The Chinese embassy in Washington said Beijing hopes 'there will be more consensus and cooperation and less misperception' coming out of the talks. With an eye on a possible leaders' summit, Stockholm could provide some answers as to the timeline and viability of that particular goal ahead of a possible meeting between Trump and Chinese leader Xi Jinping. 'The meeting will be important in starting to set the stage for a fall meeting between Trump and Xi,' said Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute. 'Beijing will likely insist on detailed preparations before they agree to a leaders' meeting.' In Stockholm, the two sides are likely to focus on commercial announcements to be made at a leaders' summit as well as agreements to address 'major irritants', such as China's industrial overcapacity and its lack of control over chemicals used to make fentanyl, also to be announced when Xi and Trump should meet, Cutler said. Sean Stein, president of the US-China Business Council, said Stockholm could be the first real opportunity for the two governments to address structural reform issues including market access in China for US companies. What businesses will be seeking coming out of Stockholm would largely be 'the atmosphere' — how the two sides characterise the discussions. They will also look for clues about a possible leaders' summit, as any real deal will hinge on the two presidents meeting each other, he said. Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. This round of the US-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some US goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy. In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump's 'Liberation Day' tariffs in April, but the US kept the 20% 'fentanyl' tariffs, in addition to the 10% baseline rate — to which China responded by keeping the same 10% rate on US products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products. Related Beijing confirms that it has signed a trade agreement with the US Volvo Cars CEO: dual tech for China and the West is new trade reality The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the US but argued the root problem lies with the US itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers. In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to US pressure and signalling goodwill. Gabriel Wildau, managing director at the consultancy Teneo, said he doesn't expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal. 'It's possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam,' Wildau said. US wants China to dump less, buy less oil from Russia and Iran China's industrial overcapacity is as much a headache for the United States as it is for the European Union. Even Beijing has acknowledged the problem but suggested it might be difficult to address. America's trade imbalance with China has decreased from a peak of $418bn (€358bn) in 2018, according to the Census Bureau. But China has found new markets for its goods; the world's dominant manufacturer ran a global trade surplus approaching $1 trillion last year — somewhat larger than the size of the US overall trade deficit in 2024. And China's emergence as a manufacturer of electric vehicles and other emerging technologies has suddenly made it more of a financial and geopolitical threat for those same industries based in the US, Europe, Japan and South Korea. 'Some enterprises, especially manufacturing enterprises, feel more deeply that China's manufacturing capabilities are too strong, and Chinese people are too hardworking. Factories run 24 hours a day,' Chinese Premier Li Qiang said on Thursday when hosting European Commission President Ursula von der Leyen in Beijing. 'Some people think this will cause some new problems in the balance of supply and demand in world production.' Li added: 'We see this problem too.' Bessent also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. However, Wildau of Teneo said China could demand some US security concessions in exchange, such as a reduced US military presence in East Asia and scaled-back diplomatic support for Taiwan and the Philippines. This would likely face political pushback in Washington. The Stockholm talks will be 'geared towards building a trade agreement based around Chinese purchase commitments and pledges of investment in the US in exchange for partial relief from U.S. tariffs and export controls,' Wildau said. He doubts there will be a grand deal. Instead, he predicts 'a more limited agreement based around fentanyl'. 'That,' he said, 'is probably the preferred outcome for China hawks in the Trump administration, who worry that an overeager Trump might offer too much to Xi.' 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Euronews
2 days ago
- Business
- Euronews
US and China to talk in Stockholm as trade truce expiration nears
When top US and Chinese officials meet in Stockholm on Monday, it's likely that they will agree to leave tariffs at the current levels, if they don't secure a more favourable framework. Analysts say the two sides are working to secure a more lasting trade deal ahead of a meeting between their presidents later this year. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are holding talks on Monday for the third time this year. This round of discussions is taking place in the Swedish capital, nearly four months after President Donald Trump upset global trade with his sweeping tariff proposal, including an import tax that shot up to 145% on Chinese goods. 'We have the confines of a deal with China,' Trump said on Friday. Bessent told MSNBC on Wednesday that the two countries had reached a 'status quo' after talks in Geneva and London, with the US taxing imported goods from China at 30% and China responding with a 10% tariff, on top of tariffs prior to the start of Trump's second term in office. 'Now we can move on to discussing other matters in terms of bringing the economic relationship into balance,' Bessent said. He was referring to the US running a $295.5 billion (€253.1bn) trade deficit last year. Washington is seeking an agreement that would enable it to export more to China and shift the Chinese economy more toward domestic consumer spending. The Chinese embassy in Washington said Beijing hopes 'there will be more consensus and cooperation and less misperception' coming out of the talks. With an eye on a possible leaders' summit, Stockholm could provide some answers as to the timeline and viability of that particular goal ahead of a possible meeting between Trump and Chinese leader Xi Jinping. 'The meeting will be important in starting to set the stage for a fall meeting between Trump and Xi,' said Wendy Cutler, a former US trade negotiator and now vice president at the Asia Society Policy Institute. 'Beijing will likely insist on detailed preparations before they agree to a leaders' meeting.' In Stockholm, the two sides are likely to focus on commercial announcements to be made at a leaders' summit as well as agreements to address 'major irritants', such as China's industrial overcapacity and its lack of control over chemicals used to make fentanyl, also to be announced when Xi and Trump should meet, Cutler said. Sean Stein, president of the US-China Business Council, said Stockholm could be the first real opportunity for the two governments to address structural reform issues including market access in China for US companies. What businesses will be seeking coming out of Stockholm would largely be 'the atmosphere' — how the two sides characterise the discussions. They will also look for clues about a possible leaders' summit, as any real deal will hinge on the two presidents meeting each other, he said. Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. This round of the US-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some US goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy. In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump's 'Liberation Day' tariffs in April, but the US kept the 20% 'fentanyl' tariffs, in addition to the 10% baseline rate — to which China responded by keeping the same 10% rate on US products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products. The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the US but argued the root problem lies with the US itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers. In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to US pressure and signalling goodwill. Gabriel Wildau, managing director at the consultancy Teneo, said he doesn't expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal. 'It's possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam,' Wildau said. US wants China to dump less, buy less oil from Russia and Iran China's industrial overcapacity is as much a headache for the United States as it is for the European Union. Even Beijing has acknowledged the problem but suggested it might be difficult to address. America's trade imbalance with China has decreased from a peak of $418bn (€358bn) in 2018, according to the Census Bureau. But China has found new markets for its goods; the world's dominant manufacturer ran a global trade surplus approaching $1 trillion last year — somewhat larger than the size of the US overall trade deficit in 2024. And China's emergence as a manufacturer of electric vehicles and other emerging technologies has suddenly made it more of a financial and geopolitical threat for those same industries based in the US, Europe, Japan and South Korea. 'Some enterprises, especially manufacturing enterprises, feel more deeply that China's manufacturing capabilities are too strong, and Chinese people are too hardworking. Factories run 24 hours a day,' Chinese Premier Li Qiang said on Thursday when hosting European Commission President Ursula von der Leyen in Beijing. 'Some people think this will cause some new problems in the balance of supply and demand in world production.' Li added: 'We see this problem too.' Bessent also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. However, Wildau of Teneo said China could demand some US security concessions in exchange, such as a reduced US military presence in East Asia and scaled-back diplomatic support for Taiwan and the Philippines. This would likely face political pushback in Washington. The Stockholm talks will be 'geared towards building a trade agreement based around Chinese purchase commitments and pledges of investment in the US in exchange for partial relief from U.S. tariffs and export controls,' Wildau said. He doubts there will be a grand deal. Instead, he predicts 'a more limited agreement based around fentanyl'. 'That,' he said, 'is probably the preferred outcome for China hawks in the Trump administration, who worry that an overeager Trump might offer too much to Xi.'
