US-China set to meet as tariff pause extends
US-China Tariff Talks Set in Stockholm
A delegation headed by Treasury Secretary Scott Bessent will meet a Chinese team led by Vice Premier He Lifeng in Sweden later this week. The two powers aim to extend a 90‑day pause on steep duties that reached triple‑digit levels in April.
Key Points of the Negotiations
- Both sides have temporarily lowered tariffs to 30% in the United States and 10% in China.
- The pause is expected to expire on August 12; Stockholm talks could push it another 90 days.
- Negotiations in London after Geneva have restarted flows of rare earths and semiconductors.
Impact on Other Trading Partners
Countries that fail to reach an agreement may face duty hikes on August 1. For example, Brazil and India could see rates rise from a baseline of 10% to up to 50%.
Market Outlook
Business leaders in the United States are not expecting a detailed readout from Stockholm. Instead, the atmosphere of the talks and the promise of an extension of the tariff pause are considered more important.
Statements from Swedish Leaders
Sweden’s Prime Minister Ulf Kristersson welcomed the willingness of both sides to negotiate, describing it as a positive development.
Challenges and Future Prospects
While progress has been made with partners such as the EU, Japan, the Philippines, and South Korea, the United States still seeks to diversify supply chains, enforce advanced technology controls, and curb excess Chinese capacity.
Future presidential meetings — possibly in Beijing later this year — are expected to be the decisive factor in determining the outcome of these high‑stakes talks.
