Senior officials from the United States and China met in Stockholm on Monday to begin a two-day round of negotiations aimed at extending a fragile tariff truce due to expire on 12 August. The high-level talks come at a pivotal moment for global trade stability, with businesses and markets watching closely for signs of de-escalation between the world’s two largest economies.
Talks focus on short-term truce extension
Led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the meeting centred on extending the current 90-day suspension of new tariffs that has temporarily calmed trade tensions since May. While no breakthrough was expected, both sides signalled a willingness to continue dialogue, with a likely outcome being another 90-day extension to avoid a sharp increase in duties on critical goods.
Discussions also touched on maintaining mineral exports, intellectual property protections and trade transparency. Core disputes—including Chinese technology transfers, oil imports from sanctioned states, and fentanyl-linked tariffs—remain unresolved and are unlikely to see movement during this round.
No summit confirmed, but groundwork laid
Speculation has grown around a potential meeting between US President Donald Trump and Chinese President Xi Jinping later this year, though no plans have been announced. Trump dismissed recent reports of an upcoming summit as “fake news”, saying any such encounter would depend entirely on a formal invitation from Beijing.
Nonetheless, the Stockholm talks are seen as preparatory, building a foundation for future engagement should political conditions improve. The presence of top-level negotiators suggests both sides are keen to avoid escalation as domestic economic concerns intensify.
Sweden positions itself as quiet mediator
Hosting the meeting underscores Sweden’s diplomatic positioning as a neutral facilitator. Finance Minister Elisabeth Svantesson welcomed the discussions, describing them as “a vital step toward global stability”. Swedish officials reportedly held preliminary talks with their Chinese counterparts, raising concerns over specific corporate practices and signalling the EU’s broader interest in the outcome.
Sweden’s involvement also reflects Europe’s strategic interest in preventing a renewed trade war that could spill over into transatlantic supply chains and consumer markets.
Implications for global trade
A successful extension of the truce would help avoid further strain on global markets, especially as central banks across continents face tightening cycles, weakening currencies and declining consumer confidence. Businesses are particularly focused on clarity regarding US-China trade terms ahead of the holiday production cycle.
Still, the structural gap between Washington and Beijing remains wide. While the US seeks greater access to Chinese markets and reforms to state subsidies, China is pushing for tariff relief tied to its imports and raw materials. Both sides are navigating domestic political pressures that could limit room for compromise.
With no joint statement expected, the outcome of this week’s talks may rest more on tone than text. A continued willingness to meet and manage tensions, however, marks progress in an increasingly volatile geopolitical landscape.
REFH – Newshub, 29 July 2025
