US Treasury chief seeks China tariff deadline extension in upcoming talks

US Treasury Secretary Anticipates Extended Mid‑August Deadline for Escalating China Tariffs

During a Fox Business interview, Treasury Secretary Scott Bessent revealed plans to convene with Chinese counterparts in Stockholm next week, aiming to prolong the current mid‑August timetable for re‑introducing steeper tariff levels.

Scheduled High‑Level Negotiations

• Bessent will meet Chinese officials on both Monday and Tuesday for a third discussion round.
• These talks are expected to culminate in a likely postponement of the August 12 deadline for trade levies.

Background on Trade Escalations

Earlier this year, Washington and Beijing enacted escalating tit‑for‑tat tariffs that reached triple‑digit levels, severely stalling exports between the world’s two major economies.

Recent De‑Escalation Efforts

• Following a Geneva meeting in May, both sides agreed to temporarily lower tariff levels until next month.
• Additional meetings occurred in London in June.

Bessent on Current Priorities

“That deal expires on August 12, and I’ll be in Stockholm on Monday and Tuesday with my Chinese counterparts, and we’ll be working out what is likely an extension then,” Bessent said.

He also noted Washington intends to discuss wider topics, potentially covering Chinese purchases of Iranian and Russian oil.

Implications for Other Economies

Bessent expected duties for economies facing an earlier August 1 deadline for higher US tariffs to boomerang back up, but signaled Washington would continue negotiations.

Progress After Geneva Stalemate

• Trade talks had initially stalled after the Geneva meeting in May.
• Bessent said trade is now in a good place with Beijing.

Disagreements and Framework

Divergences surfaced when US officials accused Beijing of violating the pact and slow‑walking rare earth export license approvals, which are crucial for electronics and other goods.

Since then, the two countries have agreed on a framework moving forward with the Geneva consensus.

US Relaxations and Chinese Countermeasures

The United States has relaxed certain restrictions on semiconductor sales to China, while Beijing has reviewed applications for export licenses of controlled items.

Trump Administration’s 10‑Percent Tariff

• Since returning to the White House in January, President Donald Trump imposed a sweeping 10 percent tariff on allies and competitors alike.
• Additional steep tariffs on steel, aluminum, and autos were also introduced.

The 10 percent blanket rate is expected to rise for dozens of economies—except China—on August 1 unless they reach an agreement with Washington to avert this outcome.

Current Agreements

• So far, the Trump administration has announced deals with Britain, Vietnam, and Indonesia.
• Bessent confirmed that more pacts are forthcoming.