US and Chinese officials have agreed to extend a 90-day tariff truce following two days of talks in Stockholm, which both sides described as constructive, aimed at de-escalating the trade war that threatens global growth between the world’s two largest economies.<\/p>\n
No significant breakthrough was achieved, and US officials stated that it is up to President Donald Trump to decide whether to extend the trade truce, which is set to expire on August 12, or if tariffs will rise to triple-digit figures. However, US Treasury Secretary Scott Bessent downplayed expectations that Trump would refuse an extension.<\/p>\n
“The meetings were very constructive. We just haven’t given the green light yet,” Bessent told reporters after the meetings.<\/p>\n
Trump, returning to Washington from Scotland where he signed a trade agreement with the European Union, said that Bessent had briefed him on the China talks.<\/p>\n
“He is very pleased with the meeting, feeling better than he did yesterday,” Trump told reporters aboard Air Force One.<\/p>\n
After months of threatening trade partners with high tariffs, Trump has signed trade deals with the EU, Japan, Indonesia, and other countries, but China’s powerful economy and its control over the global flow of rare earth elements make these negotiations particularly complex.<\/p>\n
In May, both sides refrained from imposing triple-digit tariffs that would have amounted to a bilateral trade embargo. However, if an agreement is not reached, global supply chains and financial markets could face renewed turmoil.<\/p>\n
Bessent told reporters that he expected to meet with Trump on Wednesday after they both returned to Washington, adding that the final decision on the extension rests with the president.<\/p>\n
US Trade Representative Jamieson Greer added that a 90-day extension is among the options.<\/p>\n
“We certainly had constructive talks to bring back a positive report. But the decision to extend is his,” Greer said, speaking after the talks held at Rosenbad, the Swedish prime minister’s office in central Stockholm.<\/p>\n
Trump plans to meet with Xi by year-end<\/strong><\/p>\n Bessent said there would be another meeting between US and Chinese officials in about 90 days and that agreements regarding China’s flow of rare earth elements have become clearer following previous talks in Geneva and London.<\/p>\n “A good rapport and mutual respect have been established on a personal level. I think we have a much better understanding of their agenda,” he said.<\/p>\n Highlighting the risks, the International Monetary Fund (IMF) raised its global growth forecast on Tuesday but noted that a potential increase in tariffs remains a significant risk.<\/p>\n China’s chief trade negotiator, Li Chenggang, said both sides fully understand the importance of maintaining a stable and robust economic and trade relationship.<\/p>\n “The Chinese and US economic and trade teams will maintain active communication, exchange views on economic and trade issues in a timely manner, and continue to promote the stable and healthy development of bilateral economic and trade relations,” Li said.<\/p>\n The talks could pave the way for a meeting between Trump and Chinese President Xi Jinping later in the year, although US officials said the topic was not discussed. Aboard Air Force One, Trump said he thought he would meet with Xi before the end of the year, without going into detail.<\/p>\n The Stockholm meetings also included a lengthy discussion about the US and Chinese economies. Greer and Bessent emphasized that China needs to transition from a state-led, export-driven manufacturing economy to one fueled by rising consumer demand, which would help US exports.<\/p>\n