U.S. and China Seek to Extend Tariff Deadline After Productive Talks in Stockholm

STOCKHOLM (AP) — Following two days of intensive trade negotiations in Stockholm, the United States and China have agreed to explore extending the deadline for new tariffs on each other’s imports, according to Beijing’s chief negotiator.

Discussions and Outcomes

While the U.S. delegation acknowledged that the topic of tariff extension was raised during the discussions, no final decision was made. Chinese officials described the talks as “in-depth, candid, and constructive,” and expressed a commitment to work towards pausing tariffs beyond the August 12 deadline for an additional 90 days.

According to China’s Vice Premier He Lifeng, this stability in economic relations is essential not just for both nations, but also for global economic health: “A stable, healthy, and sustainable China-U.S. economic and trade relationship serves not only the two countries’ respective development goals but also contributes to global economic growth and stability.” However, he refrained from detailing how such an extension would be implemented.

Key Themes in Negotiations

U.S. Treasury Secretary Scott Bessent characterized the talks as particularly comprehensive. He highlighted various issues of concern for the U.S., including China’s procurement of Iranian oil, the provision of dual-use technology to Russia, and China’s overproduction of goods that exceeds global demand.

Bessent remarked, “We just need to de-risk with certain strategic industries, whether it’s rare earths, semiconductors, or medicines, and we talked about what we could do together to achieve balance within the relationship.” He emphasized the U.S. goal of revitalizing domestic manufacturing, securing agricultural and energy purchase agreements, and addressing trade deficits.

Context of the Talks

The Stockholm talks commenced on Monday and were aimed at addressing persistent tariff issues that have complicated the vital economic ties between the two largest economies in the world. Prior discussions took place in Geneva and London, focusing on high tariffs that acted almost as a trade embargo, alongside export controls on key products, particularly in the technology sector.

Monday’s closed-door session lasted nearly five hours at the office of Swedish Prime Minister Ulf Kristersson, who met with U.S. officials to discuss the talks prior to their continuation on Tuesday.

Potential High-Level Meeting

Amidst the negotiations, there are considerations for a meeting between President Donald Trump and Chinese President Xi Jinping, which could solidify any significant agreements reached. Trump speculated about such a meeting taking place “before the end of the year” during his remarks aboard Air Force One.

On his Truth Social platform, Trump maintained that he was not actively seeking the summit but would respond to an invitation, which he claimed had already been extended by Xi. Bessent clarified that the summit was not on the agenda in Stockholm, although he acknowledged a mutual desire for continued negotiations between their trade teams.

Striving for a Balanced Trade Relationship

Amid ongoing tensions, it’s noteworthy that the U.S. has successfully negotiated tariff agreements with several key trading partners, including Britain, Japan, and the European Union. However, achieving a similar agreement with China remains particularly challenging.

Greer, the U.S. Trade Representative, reflected positively on the pragmatic approach taken by Chinese negotiators, emphasizing the importance of continuous dialogue to pave the way for future negotiations.

While analysts speculated that the Stockholm discussions would likely result in an extension of existing tariffs—currently at 30% on Chinese goods and 10% on U.S. products—there remains uncertainty due to a historical context of mistrust and retaliation.

Looking Ahead

Though specific details from the talks remain sparse, there is cautious optimism among U.S. officials. Some suggest that the economic conditions may improve enough for Beijing and Washington to work towards a long-term balance in their economic interactions.

Prominent trade experts like Wendy Cutler noted the challenges ahead, as China’s negotiating position has evolved to become more assertive, making it essential for U.S. negotiators to consider a more equitable approach than during previous discussions.

Conclusion: A Constructive Dialogue

Bessent reported an overall positive tone in the meetings, while Chinese negotiator He Lifeng expressed an agreement to maintain close communication on trade and economic matters moving forward. With a heightened security presence and a controlled public environment during the Stockholm talks, the significance of these discussions was underscored for both nations and their respective economic futures.

As the delegations depart Stockholm, the potential for future negotiations and agreements remains a pivotal focus for both the United States and China.