Stockholm Buzz: China & US Trade Talks Ignite Second Day
Stockholm session seeks to extend China‑US tariff truce
Key points from the talks
- 30 percent US duties on Chinese goods, 10 percent Chinese levies on US imports.
- Original 90‑day pause agreed in Geneva in May, ending on 12 August.
- Both delegations hint at pushing the truce beyond the August deadline.
- US‑EU deal on the weekend set US tariffs at 15 percent on most EU imports, none on US goods to the EU.
Background of the trade war
After President Donald Trump’s administration imposed a series of tit‑for‑tat tariffs, the United States and China reached an agreement in Geneva in May that dramatically lowered each side’s tariffs on the other’s goods.
Intent of the Stockholm talks
Both China and the United States aim to use the Stockholm negotiations to negotiate an extension of the tariff pause by an additional 90 days, according to reports from South China Morning Post sourced on both sides.
Trump’s strategy on other trade partners
Trump has threatened significant tariffs on dozens of countries, including Brazil and India, with potential increases of up to 50 percent.
China’s demand for reciprocity
Chinese foreign ministry spokesman Guo Jiakun emphasized the need for dialogue to reduce misunderstandings and expressed a desire for “reciprocity” in trade with the United States.
Analysts view the truce extension as a market catalyst
Stephen Innes, managing partner at SPI Asset Management, suggested that extending the 90‑day truce could set the stage for a future “handshake” between President Trump and President Xi Jinping, thereby providing a risk‑on catalyst for markets.
