US and China Hold Marathon Trade Talks in Stockholm to Extend Tariff Truce
Top economic officials from the United States and China met in Stockholm on Monday for over five hours of negotiations. Their goal: to resolve key trade disputes and extend a three-month truce in the ongoing trade conflict between the world’s two largest economies.
U.S. Treasury Secretary Scott Bessent led the American delegation, arriving at the Swedish prime minister’s office, Rosenbad, early in the afternoon. China’s Vice Premier He Lifeng also attended, according to video footage from the venue.
Beijing faces an August 12 deadline to reach a lasting tariff agreement with President Donald Trump’s administration. This follows preliminary trade deals in May and June aimed at ending escalating tariff exchanges and export restrictions, including China’s halt on rare earth mineral supplies.
Negotiators from both sides left the meeting around 8 p.m. local time without addressing reporters. Talks are scheduled to continue on Tuesday.
During a press conference in Scotland alongside UK Prime Minister Keir Starmer, Trump commented on the talks, saying, “I’d love to see China open up their country.”
Without a deal, global supply chains could face major disruptions. U.S. tariffs could revert to triple-digit levels, effectively freezing trade between the two nations.
U.S. Trade Representative Jamieson Greer, present at the talks, told CNBC he did not expect a major breakthrough. Instead, the focus was on monitoring current agreements and ensuring the flow of critical materials between the countries.
The Stockholm discussions came just one day after Trump signed a major trade agreement with the European Union, imposing a 15% tariff on most EU exports to the U.S.
Path to a Trump–Xi Meeting?
Trade experts believe another 90-day extension of the tariff and export control truce is likely. Such a move could clear the way for a meeting between President Trump and Chinese President Xi Jinping, possibly in late October or early November.
According to the Financial Times, the U.S. recently paused some tech export restrictions to China in an effort to support ongoing trade talks and make room for a Trump–Xi summit.
However, tensions in Washington may complicate negotiations. U.S. lawmakers from both parties are preparing to introduce legislation targeting China’s actions on human rights, Taiwan, and domestic dissent. These issues could add pressure to the Stockholm negotiations.
Taiwanese President Lai Ching-te is reportedly postponing a planned August visit to the U.S., which could have further strained talks with Beijing. China considers Taiwan a part of its territory and strongly opposes any official interaction between Taiwan and Washington.
Earlier rounds of U.S.-China negotiations, held in Geneva and London, focused on reducing retaliatory tariffs and restoring trade in rare earth minerals, AI chips from companies like Nvidia (NASDAQ:NVDA), and other restricted goods.
So far, these discussions have not addressed deeper economic concerns. The U.S. accuses China of flooding markets with low-cost goods through its export-led growth model, while China objects to U.S. national security export controls, viewing them as efforts to slow its technological progress.
According to Scott Kennedy of the Center for Strategic and International Studies, past talks mainly aimed to stabilize relations before tackling the underlying causes of the trade rift.
Bessent has indicated support for extending the deadline and urged China to reduce its dependence on exports by boosting domestic consumption—a long-standing U.S. demand.
Analysts note that trade negotiations with China are more complex than with other Asian nations. China’s dominance in rare earth mineral production—crucial for military and automotive industries—gives it powerful leverage over U.S. supply chains.
