Discussions on Extension of Tariff Suspension Set to Expire in September and Other Issues
The United States and China held their third round of high-level trade talks in Stockholm, Sweden, on July 28 (local time), discussing the possible extension of a tariff suspension measure.
According to foreign media outlets such as the Associated Press, the two-day talks were attended by U.S. Treasury Secretary Scott Besant and U.S. Trade Representative Jamison Greer on the American side, and Vice Premier He Lifeng of the Chinese State Council on the Chinese side. The first day's meeting lasted about five hours.
A spokesperson for the U.S. Treasury Department announced that the two sides agreed to resume negotiations on the morning of July 29. Previously, Secretary Besant had stated that the talks would be held over two days, concluding on July 29.
This meeting marks the third high-level trade negotiation, following previous rounds in Geneva, Switzerland in May and London, United Kingdom in June. The main agenda is whether to extend the tariff suspension measure, which is set to expire on August 11. According to Reuters, both sides are aiming for a three-month extension. If the suspension of high tariffs is extended by three months, the tariff truce between the two countries is expected to last until November.
Previously, at the first round of talks in Geneva, the two countries agreed to mutually reduce ultra-high tariffs by 115 percentage points each, resulting in a 30% tariff rate for the United States and 10% for China. At the second round in London, discussions focused on the United States easing export controls on semiconductors and China easing export controls on rare earth elements.
During this third round of talks, it is likely that, as previously indicated by Secretary Besant, the United States raised concerns about China's excess manufacturing capacity in addition to discussing the extension of the tariff suspension. On the other hand, China is believed to have requested clarification of the criteria for the 20% tariff imposed by the United States in response to the fentanyl distribution issue.
There is also speculation that a wide range of topics were discussed, including agricultural trade and the sale of the U.S. business operations of TikTok, a Chinese video-sharing platform.
Guo Jiaqun, spokesperson for the Chinese Ministry of Foreign Affairs, stated at a regular briefing that day regarding the third round of trade talks, "We need to pay attention to the specific developments taking place in Sweden," and added, "China's position on economic and trade issues has always been consistent." He continued, "We hope the United States will implement the important agreements reached by the two leaders during their phone call, and that both sides will work to promote consensus through dialogue and communication based on equality, respect, and mutual benefit, thereby fostering stable, healthy, and sustainable development of China-U.S. relations."
Before the talks, Representative Greer said in an interview with CNBC, "We will continue to monitor and review the implementation status of the agreements we have made so far," adding, "I do not expect any major breakthrough today."
Meanwhile, the South China Morning Post (SCMP) reported on July 26, citing multiple anonymous sources, that President Trump may hold talks with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation (APEC) summit, which will be held in South Korea from October 31 to November 1. It was mentioned that President Trump might visit China before the APEC summit or meet separately with President Xi during the summit.
SCMP also reported that a delegation of U.S. business leaders is scheduled to visit China this week. According to the report, the delegation is being organized by the U.S.-China Business Council (USCBC) and will be led by Raj Subramaniam, Chairman of the USCBC Board and CEO of FedEx.
Although the full list of delegates and detailed schedule have not been disclosed, sources said this will be the highest-level U.S. business delegation to visit China since the announcement of reciprocal tariffs by the United States in April.
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