Key Points
- The U.S. and China have agreed to seek another 90-day extension of their tariff truce.
- The final decision on the extension rests with President Donald Trump.
- The talks were described as “constructive,” but no breakthroughs were announced.
- The discussions are aimed at defusing a trade war over complex issues like rare earths and technology.
After two days of “constructive” talks in Stockholm, U.S. and Chinese officials have agreed to seek another extension of their 90-day tariff truce. The move aims to defuse a tense trade war between the world’s two largest economies that threatens to slow down global growth.
While no breakthroughs were announced, both sides described the talks positively. U.S. Treasury Secretary Scott Bessent said the meetings were “very constructive,” and President Donald Trump will have the final say on extending the truce, which is set to expire on August 12. However, Bessent seemed confident that Trump would approve the extension.
The talks in Stockholm are the latest in a series of negotiations aimed at resolving complex issues, including the flow of Chinese rare earths and U.S. technology.
China’s grip on rare earth materials gives it significant leverage, making these negotiations particularly difficult. In May, both countries narrowly avoided imposing crippling triple-digit tariffs on each other.
The discussions could also pave the way for a meeting between President Trump and Chinese President Xi Jinping later this year. The U.S. team also used the meeting to push China to shift its economy away from state-led exports and toward more consumer demand, which would help U.S. businesses. Both sides agreed that a stable trade relationship is good for them and the world economy.
