US-China talks resume in Stockholm as Trump-Xi summit looms
Senior U.S. and Chinese officials are set to meet today in Stockholm to revive negotiations aimed at extending a fragile tariff truce and easing economic tensions ahead of a possible meeting between President Donald Trump and Chinese President Xi Jinping later this year.
The talks come as Beijing races against an August 12 deadline to finalize a long-term agreement with Washington that would prevent a return to harsh tariffs and escalating trade restrictions. Without a breakthrough, U.S. duties could snap back to triple-digit levels, threatening global supply chains and prompting a new wave of economic uncertainty, News.Az reports, citing Reuters.
Analysts say the most likely outcome of the Stockholm negotiations is a 90-day extension of the tariff and export control ceasefire reached in mid-May. While hopes for a major breakthrough remain low, such an extension would buy time for both sides to prepare for a high-stakes Trump-Xi summit tentatively planned for October or November.
A U.S. Treasury spokesperson declined to comment on reports that both sides have agreed to avoid new tariffs or escalatory measures during this period.
The talks follow Trump’s weekend agreement with the European Union, which includes a 15% tariff on most EU goods and a sweeping $750 billion energy deal. While no similar outcome is expected from the U.S.-China dialogue, the EU pact may serve as a model for further negotiations.
The Financial Times reported Monday that the Biden administration has quietly paused new restrictions on tech exports to China in an effort to preserve the positive momentum ahead of a potential Trump-Xi summit. The Commerce Department has reportedly been instructed to delay imposing fresh curbs on sectors such as semiconductors and AI chip components.
Reuters could not independently verify this report. The White House and Commerce Department declined to comment.
Meanwhile, China is pressing for reductions in U.S. tariffs, which currently average around 55% on Chinese goods, and seeking relief from strict export controls that Beijing claims are aimed at containing its technological advancement.
While recent meetings in Geneva and London helped de-escalate tensions, they stopped short of addressing deeper structural disagreements.
Washington continues to criticize China’s state-driven economic model, which it says floods global markets with cheap exports. Beijing, on the other hand, opposes U.S. national security-driven controls on high-tech exports, calling them a form of economic containment.
“The Geneva and London rounds were more about restoring communication than resolving the root issues,” said Scott Kennedy, a China expert at the Center for Strategic and International Studies. “A 90-day ceasefire is the best-case scenario right now.”
Speculation is mounting over a potential Trump visit to China later this year — a trip that could serve as the centerpiece of a renewed push for a comprehensive trade deal. According to Sun Chenghao of Tsinghua University, such a summit could pave the way for mutual concessions: easing U.S. fentanyl-related tariffs in exchange for renewed Chinese purchases of American agricultural goods.
However, China is expected to seek broader tariff reductions and an easing of tech-related restrictions in exchange for fulfilling its stalled 2020 purchase commitments.
Still, progress remains cautious.
“The future prospect of a presidential summit is very beneficial,” said Sun. “But each side wants to lock in small wins before making any big commitments.”
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