US‑China Trade Talks in Stockholm Continue Amid Tariff Deadline
Trade representatives from the United States and China met for a second consecutive day in Stockholm on July 28–29, 2025, to discuss the extension of a tariff pause set to expire on August 12. Officials from both nations described the atmosphere as open and constructive, signaling progress but stopping short of a final agreement.
Trump Holds Final Say on Outcome
Chinese officials expressed willingness to continue the current truce, but U.S. representatives clarified that the ultimate decision rests with President Donald Trump. As of now, no official extension has been announced, but both sides have agreed to maintain ongoing dialogue in the weeks ahead.
Key Issues: Trade Balance, Technology, and Minerals
Several issues remain central to the discussions. The United States has raised concerns about China’s industrial overproduction, particularly in steel and solar sectors, and the export of sensitive technologies to Russia. It has also emphasized the need to reduce dependence on Chinese rare earth minerals, which are crucial for defense and electronics industries. In response, Chinese officials stressed the importance of long-term stability in trade relations and highlighted mutual economic interdependence.
Global Stakes and Market Reactions
The economic stakes of the negotiations are high. If the tariff pause ends without an agreement, tariffs on certain imports could rise sharply, ranging from 30% to as high as 145%. This could fuel global inflation and slow recovery in international trade. Financial analysts and international institutions have warned of the possible shock such a development could bring to the global economy.
Outlook for Further Talks
Looking ahead, a new round of negotiations may occur within 90 days if the pause is extended. President Trump has hinted at a possible meeting with Chinese President Xi Jinping later this year, but no date or invitation has been confirmed. Meanwhile, markets continue to watch the situation closely for signals of de-escalation or further tension between the world’s two largest economies.
