U.S. and China Explore Tariff Extension After Stockholm Trade Talks

Following trade talks in Stockholm, the United States and China have agreed to explore extending the deadline for new tariffs. This announcement came from China's top trade official after two days of discussions. While the U.S. side confirmed the extension was discussed, a decision had not yet been made.

China's representative described the talks as "in-depth, candid, and constructive," highlighting the shared understanding of the importance of stable economic and trade relations. U.S. Treasury Secretary Scott Bessent characterized the talks as comprehensive, covering U.S. concerns regarding China's oil purchases from Iran, its supply of dual-use technology to Russia, and its manufacturing output exceeding global demand.

Bessent emphasized the U.S. goal of restoring domestic manufacturing, securing agreements for U.S. agricultural and energy products, and reducing trade deficits. The discussions in Stockholm aimed to resolve tariff-related issues that have strained the commercial ties between the world's two largest economies. Previous meetings in Geneva and London addressed specific issues, including tariffs, export controls, China's control over rare earth magnets, and U.S. restrictions on semiconductors.

The talks, which began on Monday, took place behind closed doors at the Swedish Prime Minister's office. Before the talks resumed on Tuesday, the Swedish Prime Minister met with U.S. officials. The discussions unfolded as President Donald Trump considered a potential meeting with Chinese President Xi Jinping, which could be a crucial step towards finalizing any major agreements.

U.S. officials stated that the summit was not discussed in Stockholm but that they did discuss the desire of both presidents for trade negotiations. The American team planned to discuss the extension of the August deadline with the President. The U.S. has reached tariff agreements with other key trading partners, but China remains a significant challenge.

Analysts anticipated an extension of current tariff levels, which are lower than those proposed earlier. The two sides had previously agreed to a 90-day pause on higher tariffs, ending on August 12. The current tariffs stand at 30% on Chinese goods by the U.S. and 10% on U.S. products by China.

Bessent suggested that the situation has stabilized, allowing for a focus on long-term economic balance. The U.S. has long sought to encourage more domestic consumption in China and greater market access for foreign goods. Experts noted the challenges faced by the U.S. team, including a confident partner willing to retaliate.

Both sides agreed to maintain close contact and communicate on trade and economic issues. The meetings were held under tight security, with flags of both nations displayed at the Prime Minister's office.