• U.S. Treasury Secretary Scott Bessent confirms any finalized trade deals with China require President Trump’s sign-off, stalling negotiations.
  • Current reduced tariffs (30% U.S. on China, 10% China on U.S.) remain in place but face an August 12, 2025 expiration deadline.
  • High-stakes talks in Stockholm between Bessent and Chinese Vice Premier He Lifeng yielded no public breakthroughs, leaving markets in suspense.

Negotiations in Limbo

U.S. Treasury Secretary Scott Bessent has put a temporary freeze on advancing new trade agreements with Chinese officials, emphasizing that any deal must first secure approval from President Trump. The announcement comes as both nations navigate a fragile truce following April 2025’s near-crisis tariff escalations, which saw rates briefly spike before settling at their current levels.

“Nothing moves forward without the president’s green light,” a Treasury official familiar with the discussions said, speaking on condition of anonymity. The stalemate leaves businesses on both sides of the Pacific grappling with uncertainty as the August 12 deadline for the tariff pause looms.

Stockholm Talks Yield Little Clarity

Recent closed-door meetings between Bessent and Chinese Vice Premier He Lifeng in Stockholm failed to produce tangible progress, though neither side has publicly walked away from negotiations. Analysts suggest the lack of a joint statement indicates neither party is willing to concede ground ahead of Trump’s review.

Market reaction has been muted so far, with investors adopting a wait-and-see approach. “The absence of escalation is being treated as a positive, but the clock is ticking,” noted a strategist at a major investment bank. Technology restrictions, particularly on AI exports, remain a sticking point, alongside broader issues like fentanyl precursors and China’s ties to Russia.

What Comes Next?

With Trump’s approval now the linchpin, the path forward hinges on whether the administration views China’s concessions as sufficient. A senior White House aide, who asked not to be named, downplayed the need for an imminent Trump-Xi summit, calling it “unnecessary unless there’s a deal worth celebrating.” Meanwhile, businesses are bracing for either a breakthrough or a return to higher tariffs—a scenario that could reignite global supply chain disruptions.

Correction: An earlier version misstated the U.S. tariff rate on Chinese goods; it is 30%, not 25%. The Treasury declined to comment on whether Bessent has presented specific terms to Trump.