U.S. and China meet to discuss trade tariffs

Negotiators from the U.S. and China are in Stockholm to discuss economic disputes and tariffs.

U.S. and China aim to extend trade truce in Stockholm

On May 10, 2025, senior U.S. and Chinese officials, including U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, are meeting in Stockholm to address key trade issues. The purpose of this meeting is to extend a truce and avoid escalating tariffs ahead of an August 12 deadline. Both nations have already set a preliminary agreement to alleviate tension after a series of trade disputes. The talks come after a recent meeting between President Trump and European Commission President Ursula von der Leyen, which resulted in a new EU tariff agreement. Analysts believe significant breakthroughs are unlikely, but the discussions could help pave the way for a meeting between Trump and Xi Jinping later this year, ultimately attempting to stabilize the global supply chain.

The Stockholm negotiations represent a critical juncture in U.S.-China relations, particularly as both economies face unprecedented pressures. The ability to maintain dialogue is essential not just for the involved countries but also for the wider global market. While meaningful progress may be limited, even a pause in tariff escalations could restore some confidence for international businesses, especially given the broader implications of potential hikes in duties. However, the ongoing tension about the export-driven nature of China's economy and U.S. tech controls remains a significant hurdle.

Highlights

As discussions move forward, the global market watches closely for potential shifts in trade policy.