Top economic officials from the United States and China met in Stockholm on Monday to discuss extending the trade truce between the two nations. This meeting is crucial as it aims to resolve ongoing economic disputes that have been central to the trade war between these global economic powerhouses.
What Happened: U.S. Treasury Chief Scott Bessent and China’s Vice Premier He Lifeng were among the key figures present at the meeting, which took place at Rosenbad, the Swedish prime minister’s office, reported Reuters. The discussions, which lasted over five hours, are part of efforts to extend a trade truce by three months. China faces an August 12 deadline to finalize a durable tariff agreement with President Donald Trump‘s administration.
Negotiators left the venue around 8 p.m. without speaking to reporters, and discussions are set to continue on Tuesday. During a press conference in Scotland, Trump expressed his desire for China to open up its economy. Without an agreement, global supply chains could face disruptions due to potential U.S. duties returning to high levels.
U.S. Trade Representative Jamieson Greer told CNBC he did not anticipate a major breakthrough but expected continued monitoring of the agreement’s implementation and groundwork for future trade enhancements.
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Why It Matters: The U.S. temporarily paused tech export restrictions to China to support trade talks and Trump’s planned meeting with Xi, according to an earlier report. The Commerce Department delayed enforcement actions to avoid disrupting negotiations. The move could boost semiconductor giants like Nvidia and AMD, though national security experts raised concerns about compromising America’s AI edge.
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This meeting in Stockholm marks the third encounter this year between Bessent and Chinese Vice Premier He. The discussions are crucial in maintaining current tariff levels while both nations work towards a potential meeting between their leaders later in the year.
Recently, Trump announced a 15% tariff trade agreement with the European Union, ending months of trade uncertainty. This agreement marked a significant drop from the previously threatened 30% tariff. The EU will not impose a tariff on U.S. imports, bringing stability and predictability for businesses on both sides of the Atlantic.
Additionally, Trump recently declared a monumental $550 billion trade agreement with Japan, which is expected to create hundreds of thousands of jobs. This deal will see Japan investing heavily in the U.S., with America receiving 90% of the profits. Japan will also open its markets to U.S. products while agreeing to a reciprocal tariff of 15% on U.S. imports.
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