US And China Resume High-Stakes Talks In Stockholm As Tariff Truce Deadline Nears

The five-hour meeting is being seen as a critical step before an August 12 deadline for a more permanent tariff agreement with the Trump administration.

The urgency stems from the looming threat of US tariffs snapping back to triple-digit levels, which analysts warn could amount to a de facto trade embargo.

Source : Freepik

Top US and Chinese negotiators met in Stockholm on Monday for marathon discussions aimed at easing trade tensions and extending the fragile truce between the world’s two biggest economies.

The five-hour meeting is being seen as a critical step before an August 12 deadline for a more permanent tariff agreement with the Trump administration, reported Reuters.

US Treasury Secretary Scott Bessent led Washington’s delegation, arriving at Rosenbad, the Swedish prime minister’s office, in the early afternoon. China’s Vice Premier He Lifeng was also present, as captured in video footage from the venue. Talks concluded around 7 PM (1800 GMT) without comments to the media, with discussions scheduled to continue on Tuesday.

Tariff Pressure and Strategic Leverage

The urgency stems from the looming threat of US tariffs snapping back to triple-digit levels, which analysts warn could amount to a de facto trade embargo. Preliminary deals in May and June had paused retaliatory duties and restored some rare earth shipments, but the truce remains temporary.

US Trade Representative Jamieson Greer told CNBC expectations for the Stockholm talks were modest: “What I expect is continued monitoring and checking in on the implementation of our agreement thus far, making sure that key critical minerals are flowing between the parties and setting the groundwork for enhanced trade and balanced trade going forward.”

President Donald Trump, speaking alongside UK Prime Minister Keir Starmer in Scotland, hinted at his hopes for broader concessions: “I’d love to see China open up their country.”

Xi-Trump Meeting on the Horizon?

Trade analysts suggest another 90-day extension of the tariff truce is likely, clearing the way for a potential summit between Trump and Chinese President Xi Jinping later this year. The Financial Times reported that Washington has even paused certain tech export restrictions to keep talks on track.

Yet political complications loom. US lawmakers are preparing bills addressing China’s human rights record and Taiwan policy, while Taipei has quietly delayed a proposed August visit to the US to avoid inflaming Beijing.

For now, negotiations remain focused on tariffs, rare earth exports, and restoring disrupted trade flows, with deeper disputes on economic policy still waiting in the wings.