Top trade envoys from China and the US kicked off a fresh round of talks on Monday in Stockholm, aiming to smooth tensions over tariffs. US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are meeting at Sweden’s prime minister’s office for two days of negotiations, according to a report published by The Associated Press Monday. These discussions are likely to shape up the trade narrative on whether or not the current tariff levels will extend, in a possible sign toward a future meeting between US President Donald Trump and Chinese President Xi Jinping.
Tariff Pause Under Review
The fresh round of US-China trade talks taking place in Stockholm marks the third such discussion this year, following meetings in Geneva and London. Since the introduction of sweeping tariffs, US duties on some Chinese goods reached up to 145%, while China retaliated with rates as high as 125%, with markets around the world taking a major hit.
The latest round of negotiations are aimed at extending a temporary 90-day pause before tariffs revert to their previous triple-digit levels. The pause reduced American duties to 30% and China’s to 10%. Without action by August 12, both sides could resume steep tariffs, affecting not just the US and Chinese trade but economies worldwide.
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Setting the Stage for Stability
Bessent, the report said, has suggested that negotiations may move toward stabilising trade dynamics and addressing longer-term economic balance. Trump backed that stance, reportedly saying last week, “we have the confines of a deal with China.”
China’s Commerce Ministry, meanwhile, suggested that “mutual respect, peaceful coexistence and win‑win cooperation,” were pertinent to a constructive dialogue, framing the talks as a step toward positive outcomes.
Analysts believe the discussions are expected to tackle deeper structural issues: boosting US-based manufacturing, opening Chinese markets to American firms, reducing manufacturing overcapacity in China, and relaxing tariffs tied to fentanyl production inputs.
The Chinese are expected to push for the removal of a 20% fentanyl‑related tariff imposed earlier this year, as reported by AP.
Clues Point to Higher-Level Diplomacy
Observers say the Stockholm talks could be the first opportunity to hash out tougher structural reforms. Sean Stein of the US‑China Business Council called it “the first real chance” to tackle market access and economic imbalance. American companies, meanwhile, are closely observing how outcomes are described, particularly with regard to a potential Trump–Xi meeting.
Bessent had also indicated that potential Chinese purchases of Russian and Iranian oil may also be on the agenda.
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