Top officials from the United States and China have concluded two days of talks in Stockholm, describing the negotiations as “constructive” and agreeing to continue efforts to extend their 90-day tariff truce.
China’s trade negotiator, Li Chenggang, confirmed that both sides had committed to preserving the temporary ceasefire, which was first agreed in May and is set to expire on August 12. However, US Treasury Secretary Scott Bessent stressed that any decision to extend the truce rests solely with President Donald Trump.
“Nothing is agreed until we speak with President Trump,” Bessent told reporters after the talks, although he described the meetings as productive. “We just haven’t given the sign-off.”
The discussions come at a critical moment for global trade. Without an extension, both countries risk reigniting the tariff war that rattled markets earlier this year. In the absence of a deal, tariffs could snap back to previous highs—potentially reversing gains made since the May agreement.
Trump, speaking aboard Air Force One while returning from Scotland, acknowledged the talks and said he would be briefed soon.
“They had a very good meeting with China,” Trump said. “It seems they’re going to brief me tomorrow.”
The May truce had paused escalating tariffs, which had left Chinese exports facing an additional 30% duty and US goods hit with a new 10% levy in China. Bessent warned that without an agreement, these tariffs could quickly “boomerang” back into force.
Beyond tariffs, negotiators addressed other flashpoints, including US concerns over China’s trade with Russia and Iran, critical mineral exports, and the future of Chinese tech firm ByteDance’s ownership of TikTok. Rare earth minerals, vital to EV and electronics manufacturing, remain a particularly sensitive issue.
Li Chenggang emphasized the need for stability in bilateral relations, calling for both nations to maintain a “sound and stable China-US trade and economic relationship.”
Bessent expressed cautious optimism, noting that the US has gained momentum through recent trade deals with the European Union and Japan.
“They were in more of a mood for wide-ranging discussion,” Bessent said, pointing to what he called “growing trust” in the negotiations.
Despite ongoing disputes, Bessent clarified that the US is not aiming for a full economic “decoupling” from China but instead wants to reduce risk in certain key sectors such as semiconductors, rare earths, and pharmaceuticals.
US Trade Representative Jamieson Greer said the administration is already on track to reduce the US-China trade deficit by $50 billion this year.
This latest round of talks marks the third such meeting since April. While no final decisions have been made, the willingness of both sides to keep talking has given observers hope that a damaging trade escalation can still be avoided.
