- U.S. Treasury Secretary Scott Bessent confirms no discussion of a Trump-Xi meeting during Stockholm talks.
- Focus remains on resolving trade tensions and tariff disputes between the U.S. and China.
- Both sides aim to extend a 90-day tariff pause to avoid further escalation.
Trade Talks Dominate Stockholm Agenda
Senior U.S. and Chinese officials, including Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, met in Stockholm this week to address ongoing trade disputes, with no discussions about arranging a summit between Presidents Donald Trump and Xi Jinping. The talks, the third such meeting this year, centered on tariffs and trade imbalances rather than high-level diplomacy.
"The focus was squarely on resolving immediate trade issues," Bessent told reporters after the closed-door sessions. Efforts to de-escalate tensions included negotiations over the U.S.'s 145% tariff on Chinese goods, temporarily reduced to 30%, and China's retaliatory 10% levy on U.S. imports. Both nations are pushing to extend a 90-day pause on further tariff hikes, though sources close to the talks caution that significant gaps remain.
Market Implications and Next Steps
The Stockholm round follows earlier negotiations in Geneva and London, reflecting persistent efforts to stabilize a trade relationship that has roiled global markets. Analysts suggest any prolonged tariff relief could ease supply chain pressures, particularly in tech and manufacturing sectors. However, with the U.S. seeking to narrow a $904 billion trade deficit—nearly a third of which involves China—durable solutions appear elusive.
Chinese officials emphasized the need for "more consensus and cooperation," while U.S. delegates reiterated demands for structural trade reforms. Neither side responded to requests for further comment on whether future leader-level talks are being considered elsewhere. Market watchers will now turn to August deadlines for tariff pauses, with volatility likely if negotiations stall.