U.S., China Resume Talks In Stockholm To Ease Tariff Hostilities

The U.S. and Chinese officials began a second day of talks in Stockholm yesterday to resolve longstanding economic disputes and de-escalate the trade war between the world’s two largest economies.
The meetings may not yield immediate large breakthroughs, but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May.
It may also pave the way for a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping later in the year, although Trump denied on Tuesday that he was seeking one.
The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister’s office in central Stockholm.
U.S. Treasury Secretary Scott Bessent was seen arriving at Rosenbad on Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristersson. China’s Vice Premier He Lifeng also arrived at the venue.
Neither side made statements after the first day of talks.
China is facing an August 12 deadline to reach a durable tariff agreement with Trump’s administration, after reaching preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals.
Without an agreement, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels that would amount to a bilateral trade embargo.
The Stockholm talks follow Trump’s biggest trade deal yet with the European Union (EU) on Sunday for a 15 per cent tariff on most EU goods exports to the United States, and a deal with Japan.
The Financial Times reported on Monday that the United States had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump’s efforts to secure a meeting with Xi this year.
Trump pushed back against suggestions he was seeking a meeting with Xi.
“This is not correct, I am not SEEKING anything! I may go to China, but it would only be at the invitation of President Xi, which has been extended.
“Otherwise, no interest!” he wrote on Truth Social.
Meanwhile, in Washington, U.S. senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents, and Taiwan, emphasising security and human rights, which could complicate the talks in Stockholm.
Taiwan President Lai Ching-te is also set to delay an August trip his team had floated to the Trump administration that would have included stops in the United States, sources familiar with the matter told Reuters on Monday.