U.S. and China Meet in Sweden to Extend Tariff Truce, Lay Groundwork for Trump–Xi Summit

Senior officials from the United States and China began high-level trade talks in Stockholm on Monday, 28th July, aiming to extend their current tariff ceasefire beyond the August 12 deadline and ease mounting tensions between the world’s two largest economies.

Leading the discussions are U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. This marks their third meeting in three months, following earlier negotiations in London and Geneva. The talks are being closely watched as a potential precursor to a long-anticipated summit between President Donald Trump and Chinese President Xi Jinping, possibly later this year in South Korea.

At the top of the agenda is the extension of the 90-day tariff truce that has temporarily frozen additional levies on hundreds of billions of dollars in goods. Both sides appear open to continuing the pause, though officials caution that no final decision has been reached.

Another sensitive issue is the 20 percent U.S. tariff on certain Chinese goods linked to fentanyl trafficking. Washington accuses Chinese companies of exporting chemicals used to manufacture the deadly drug. China denies the claim but recently increased controls on two precursor substances. Beijing wants the U.S. to lift the tariffs, arguing it has taken meaningful steps.

The negotiations are also expected to touch on deeper trade frictions, including China’s exports of rare earth minerals and the U.S. restrictions on advanced chip technology. Meanwhile, U.S. officials may raise concerns over Beijing’s continued purchases of sanctioned oil from Russia and Iran.

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While few breakthroughs are expected in Stockholm, officials on both sides say the talks reflect a shared interest in stabilizing trade ties. Bessent called the meetings “constructive” and hinted at “likely progress” on extending the current tariff pause.

The U.S. business community is watching closely. Sean Stein, president of the U.S.-China Business Council, said “The talks offer a chance to lower tariffs and unlock broader trade in agriculture, energy, and manufacturing.”

As diplomatic efforts continue, both sides hope Stockholm can serve as a stepping stone toward a broader deal, and a high-stakes meeting between Trump and Xi later this year.