US-China Talks Resume with Likely Tariff Truce Extension

Top economic officials from the United States and China are poised to resume trade negotiations on Monday in Stockholm, with a potential extension of reduced tariff rates on the agenda. The discussions arrive at a pivotal juncture in President Donald Trump’s trade strategy, as the US races to finalise trade deals with numerous countries.

The US-China talks, set for two days in the Swedish capital, follow the imposition of high tariffs earlier in the year—reaching triple-digit levels—before both sides temporarily eased them to 30% (US) and 10% (China). This tariff truce, agreed upon in Geneva this May, is due to expire on 12 August.

Broader Trade Context

Other trading partners, including Brazil and India, face a looming 1 August deadline to finalise trade agreements with Washington or risk steep tariff hikes of up to 50%, compared to the current 10% baseline.

According to The Budget Lab at Yale University, tariffs under the Trump administration have effectively reached the highest levels since the 1930s.

Key Participants

• US Delegation: Led by Treasury Secretary Scott Bessent
• China Delegation: Headed by Vice Premier He Lifeng
• Venue: Stockholm, Sweden

Talks Progressing?

Emily Benson, head of strategy at Minerva Technology Futures, believes there has been “a significant shift” in the US administration’s approach to China, particularly since the London talks that followed Geneva.

“The mood now is more focused on achievable outcomes and preventing escalation,” she said.

She also noted a restart in rare earth and semiconductor flows, and pointed to positive signals such as Bessent’s openness to extending the 90-day tariff pause.

The South China Morning Post, citing sources from both nations, reported on Sunday that an additional 90-day tariff truce extension is expected.

International Reaction and Outlook

The US has already announced trade pacts with the EU, Britain, Vietnam, Japan, Indonesia, and the Philippines, though specifics remain sparse. The European Union unveiled a deal with Washington on Sunday, while South Korea and Seoul are hastening to reach their own accords.

“An extension of the US-China truce would signal mutual willingness to maintain dialogue,”
— Thibault Denamiel, Centre for Strategic and International Studies

Business & Diplomatic Perspectives

• Sean Stein, President of the US-China Business Council, said markets are less focused on the Stockholm outcome itself and more on the general atmosphere:

“The business community hopes the two presidents meet later this year, hopefully in Beijing.”

• Swedish Prime Minister Ulf Kristersson described the meetings as a “positive development”, encouraging for global trade stability.

Yet, not all observers are optimistic. Denamiel pointed out that many non-priority countries may be sidelined in this rapid wave of trade diplomacy. He warned that truly resilient supply chains and advanced tech regulation require broader inclusion and long-term strategy.

Summary Table:  Developments in US-China Trade Talks

As the world’s two largest economies continue negotiations, the stakes remain high — not only for bilateral trade but for the global economic landscape.