STOCKHOLM — High-level trade negotiations between the United States and China concluded in Stockholm this week without a final agreement to prevent the re-imposition of punitive tariffs, placing the fate of a fragile tariff truce in the hands of U.S. President Donald Trump.
Despite both delegations describing the two-day meetings as “constructive,” no consensus was reached on extending the current pause on tariffs, which is set to expire on August 12. Should a deal remain elusive, tariffs on each country’s imports could rebound to triple-digit levels—threatening to reignite one of the most disruptive trade disputes in modern history.
“We just haven’t been given that signoff,” U.S. Treasury Secretary Scott Bessent told reporters after the talks. “Nothing is agreed until we speak with President Trump.”
Decision Pending at the Top
U.S. Trade Representative Jamieson Greer, who led the delegation alongside Bessent, emphasized that while momentum exists for a continuation of the truce, the final decision lies solely with President Trump. “We’re going to talk to the president about whether that’s something that he wants to do,” said Greer.
President Trump confirmed he had received a positive briefing on the talks and said he would make a final determination after further discussions with his team. “It seems that they’re going to brief me tomorrow, and we’ll either approve it or not,” he said aboard Air Force One.
Chinese Optimism Meets U.S. Caution
Li Chenggang, China’s International Trade Representative, indicated that both parties would continue efforts to extend the truce, but Bessent swiftly clarified that no agreement had been made. “The Chinese have jumped the gun a little,” Bessent told CNBC, stressing that the White House has yet to commit.
Under the current truce, tariffs on U.S. imports from China were reduced from 145% to 30%, and Chinese tariffs on U.S. goods were lowered from 125% to 10%. However, failure to secure an extension could see U.S. tariffs rise by an additional 34%, according to Greer.
Strategic Frictions: Rare Earths, Russia, and Trade Structure
In addition to tariff levels, talks touched on broader strategic concerns. U.S. officials pressed China to lift its export controls on rare-earth minerals, vital for key U.S. industries including electronics and defense. Bessent warned that the ongoing restrictions impact not just the U.S., but the entire global supply chain.
Washington also raised concerns over Beijing’s continued purchases of sanctioned Russian oil and sales of dual-use technologies to Russia. Bessent noted that under U.S. legislation, countries engaging in such trade could face tariffs as high as 500%.
Though China agreed to add more components used to manufacture fentanyl to its list of controlled substances—a move welcomed by Washington—tensions remain over Beijing’s handling of strategic exports.
TikTok and Other Flashpoints
While the banned Chinese-owned app TikTok was not discussed during this round, U.S. officials reiterated their long-standing concerns over digital sovereignty, intellectual property, and foreign investment practices.
Despite setbacks, Greer highlighted China’s “strong interest in continuing talks,” with both sides agreeing to resume negotiations ahead of the August 12 deadline. This was the third such meeting following earlier sessions in Geneva and London.
Looking Ahead
While the White House recently announced trade agreements with the EU and Japan, a comprehensive U.S.-China deal remains elusive. The Biden administration—like Trump’s—has framed its China policy around de-risking strategic sectors, not full economic decoupling.
“We just need to de-risk with certain strategic industries—whether it’s rare earths, semiconductors, or medicines,” Bessent said.
As global markets await clarity, the next few days will prove critical in determining whether the two largest economies in the world can avoid another chapter in their long-simmering trade war.
Source: CNN, CommonWealth Magazine, BBC
