U.S. and China to resume tariff talks on Monday in effort to extend truce

Senior U.S. and Chinese negotiators conscionable successful Stockholm connected Monday to tackle longstanding economical disputes astatine the halfway of the countries' commercialized war, aiming to widen a truce keeping sharply higher tariffs astatine bay.

China is facing an Aug. 12 deadline to scope a durable tariff statement with President Donald Trump's administration, aft Beijing and Washington reached a preliminary woody successful June to extremity weeks of escalating tit-for-tat tariffs.

Without an agreement, planetary proviso chains could look renewed turmoil from duties exceeding 100%.

The Stockholm talks, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, instrumentality spot a time aft European Commission President Ursula von der Leyen met Trump astatine his play people successful Scotland to clinch a woody that would spot a 15% baseline tariff connected astir EU goods.

Trade analysts connected some sides of the Pacific accidental the discussions successful the Swedish superior are improbable to nutrient immoderate breakthroughs but could forestall further escalation and assistance make conditions for Trump and Chinese President Xi Jinping to conscionable aboriginal this year.

Previous U.S.-China commercialized talks successful Geneva and London successful May and June focused connected bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the travel of uncommon world minerals halted by China and Nvidia H20 AI chips and different goods halted by the United States.

So far, the talks person not delved into broader economical issues. They see U.S. complaints that China's state-led, export-driven exemplary is flooding satellite markets with inexpensive goods, and Beijing's complaints that U.S. nationalist information export controls connected tech goods question to stunt Chinese growth.

"Stockholm volition beryllium the archetypal meaningful circular of U.S.-China commercialized talks," said Bo Zhengyuan, Shanghai-based spouse astatine China consultancy steadfast Plenum.

Trump has been palmy successful pressuring immoderate different trading partners, including Japan, Vietnam and the Philippines, into preliminary deals accepting higher U.S. tariffs of 15% to 20%.

Analysts accidental the U.S.-China negotiations are acold much analyzable and volition necessitate much time. China's grip connected the planetary marketplace for uncommon world minerals and magnets, utilized successful everything from subject hardware to car windshield wiper motors, has proved to beryllium an effectual leverage constituent connected U.S. industries.

In the inheritance of the talks is speculation astir a imaginable gathering betwixt Trump and Xi successful precocious October.

Trump has said helium volition determine soon whether to sojourn China successful a landmark travel to code commercialized and information tensions. A caller flare-up of tariffs and export controls would apt derail immoderate plans for a gathering with Xi.

"The Stockholm gathering is an accidental to commencement laying the groundwork for a Trump sojourn to China," said Wendy Cutler, vice president astatine the Asia Society Policy Institute.

Bessent has already said helium wants to enactment retired an hold of the Aug. 12 deadline to forestall tariffs snapping backmost to 145% connected the U.S. broadside and 125% connected the Chinese side.

Still, China is apt to petition a simplification of the multi-layered U.S. tariffs, which full 55% connected astir goods, and further easing of U.S. high-tech export controls, analysts said. Beijing has argued that specified purchases would assistance trim the U.S. commercialized shortage with China, which reached $295.5 cardinal successful 2024.

China is presently facing a 20% tariff related to the U.S. fentanyl crisis, a 10% reciprocal tariff, and 25% duties connected astir concern goods imposed during Trump's archetypal term.

Bessent has besides said helium would sermon the request for China to rebalance its system distant from exports toward home user demand. The displacement would necessitate China to enactment an extremity to a protracted spot situation and boost societal information nets to promote household spending.

Michael Froman, a erstwhile U.S. commercialized typical during erstwhile President Barack Obama's administration, said specified a displacement has been a extremity of U.S. policymakers for 2 decades.

"Can we efficaciously usage tariffs to get China to fundamentally alteration their economical strategy? That remains to beryllium seen," said Froman, present president of the Council connected Foreign Relations think-tank.