Trump Holds the Final Call on the China Trade Truce
China‑US tariff truce talks stall in Stockholm
The United States and China held a second day of negotiations in a Swedish government building, with Vice Premier He Lifeng and Treasury Secretary Scott Bessent representing their respective sides.
Key points from the meeting
- No agreement reached. The discussion ended without any technical or commercial deal, though the U.S. voiced optimism.
- Trump’s final decision. U.S. Trade Representative Jamieson Greer said President Donald Trump would have the “final call” on any extension of the tariff pause.
- Constructive tone. Bessent described the talks as “very constructive,” stressing that “nothing has been agreed until we speak with President Trump.”
Context of the truce
After a weekend trade agreement set U.S. tariffs on most European Union imports at 15 %—with no duties on American goods entering the EU—both sides temporarily reduced fresh U.S. duties on Chinese goods to 30 % and Chinese levies to 10 %.
The 90‑day pause established in Geneva in May is scheduled to end on August 12, but indications suggest both delegations want to extend the period further.
Extension expectations
- Possible 90‑day extension. Sources on both sides reported that Washington and Beijing might lengthen the tariff pause by another 90 days.
- Trump’s briefing. Trump will be briefed again by Bessent on Wednesday; he told reporters aboard Air Force One that “we’ll either approve it or not.”
Trump threatens other countries
Separately, Trump has warned that dozens of other countries could face higher tariffs from Friday unless they reach trade deals with Washington.
- Brazil and India threatened. The South American giant faces a threat of 50 % tariffs.
- Snapback tariffs strategy. Bessent told CNBC that “it’s not the end of the world if these snapback tariffs are on for anywhere from a few days to a few weeks.”
- Deal outlines announced. Trump has already announced outlines with five countries—Britain, Vietnam, Japan, Indonesia, and the Philippines—as well as the 27‑nation EU.
China’s perspective
Beijing seeks reciprocity in its trade with the United States. Foreign ministry spokesman Guo Jiakun said that dialogue is needed “to reduce misunderstandings.”
Analysts view
Analysts noted that many of the trade deals touted by Trump were more optics than substance. Managing partner Stephen Innes of SPI Asset Management stated that an extension of the 90‑day truce could “set the stage for a Trump–Xi handshake later this year—another risk‑on carrot for markets to chew.”
