Stockholm (TDI): Senior economic representatives from the United States and China are set to resume negotiations today (Monday) in Stockholm, with both sides expected to agree on extending a temporary reduction in trade tariffs, a move seen as a positive signal for global markets.
The two-day talks in the Swedish capital come at a critical moment for global trade, as several countries race to finalize trade arrangements with Washington ahead of a looming deadline. If no agreements are reached by Friday, August 1, many of these nations, including Brazil and India, could face steep tariff increases on exports to the US, with rates jumping from the current 10% to as high as 50%.
Tariffs implemented under the Trump administration have already brought average US import duties to levels not witnessed since the 1930s, according to Yale University’s Budget Lab.
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Leading the US delegation is Treasury Secretary Scott Bessent, while Vice Premier He Lifeng heads the Chinese side. Although both nations imposed heavy tariffs on each other’s goods earlier this year, they agreed in May to a 90-day truce that lowered tariffs temporarily, US rates dropped to 30%, and China’s to 10%. That pause, however, is set to expire on August 12.
Following their initial meeting in Geneva, officials from both countries also held talks in London to resolve remaining disputes. Analysts believe the tone has shifted since then.
Read More:Â US, China Agree to Slash Tariffs by 115% for 90 Days
Both sides are reportedly leaning toward extending the tariff truce by another 90 days.
Meanwhile, the US has announced trade agreements, albeit with limited details, with several countries, including the European Union, Britain, Vietnam, Japan, Indonesia, and the Philippines.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
