US and China hold new trade talks in Sweden, hoping to strike tariff deal

Delegations from China and the United States met on Tuesday for the second day of a new round of economic and trade talks in Stockholm, the capital of Sweden. 

US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng made no public comments to reporters after the first day of talks that lasted nearly five hours behind closed doors at the Swedish prime minister’s office Monday.

The two countries hope to extend the 90-day pause on triple-digit tariffs negotiated during a meeting in Geneva in May.  

The US had agreed to settle on 30% tariffs on Chinese goods, while China had brought down its retaliatory tariffs on US products to 10%. 

Without a new agreement, this truce is expected to end on 12 August.

A phone call between Chinese President Xi Jinping and US President Donald Trump on 5 June paved the way for further discussions.

Trump sent the world into a spiralling trade war in April, when he announced his so-called “Liberation Day” tariffs against dozens of countries. 

The US has since struck deals over tariffs with some of its key trading partners, including the United Kingdom, Japan and the European Union.  

China is perhaps the biggest unresolved case. Commercial ties between the world’s two biggest economies remain fragile.  

US Treasury Secretary Scott Bessent said last week that an extension of the tariff truce was likely, and that talks with China were in “a very good place.” 

Other issues on the agenda include access of American businesses to the Chinese market, Chinese investment in the US, components of fentanyl made in China that reach US consumers, Chinese purchases of Russian and Iranian oil and American steps to limit exports of Western technology, like chips that help power artificial intelligence systems.

The Stockholm meetings could also provide some clarity about the prospects for a summit to be held later this year between Trump and Xi Jinping, seen by some as a crucial step to lock in any major agreements between their two countries.