Officials from the United States and China resumed discussions in Stockholm on Tuesday, aiming to defuse tensions and find common ground in their prolonged trade dispute. The second day of talks, held at the Swedish prime minister’s office, follows a tentative tariff truce agreed upon in May.
While immediate breakthroughs are unlikely, both countries may agree to a 90-day extension of the truce. The talks could also lay the groundwork for a potential meeting between President Joe Biden and Chinese President Xi Jinping later in the year—though Biden has denied actively pursuing one.
U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng attended the sessions, which are being closely watched by global markets. Observers note that failure to reach a lasting deal by the August 12 deadline could trigger a return to triple-digit tariffs and renewed supply chain disruptions.
The negotiations come just days after the U.S. signed a major trade agreement with the EU and reached a separate deal with Japan. Analysts believe the China talks will be more complex, given disputes over technology, rare earth minerals, and economic models.
Meanwhile, political tensions in Washington including proposed legislation on China’s human rights record and Taiwan could complicate progress. A planned trip to the U.S. by Taiwan President Lai Ching-te has reportedly been postponed to avoid escalating diplomatic friction.
Despite obstacles, both sides are under pressure to stabilize trade relations and prevent another round of damaging tariff escalations.
