China and U.S. Extend Tariff Pauses Following Constructive Talks in Stockholm

In a significant development for international trade, China and the United States have agreed to extend their tariff pauses after productive discussions held in Stockholm on July 29, 2025. China's top trade official, Li Chenggang, announced this agreement following two days of negotiations with U.S. officials, emphasizing the constructive and candid nature of the talks. The current tariff rates will remain unchanged, with the U.S. imposing a 30% tariff on Chinese goods and China maintaining a 10% tariff on U.S. products.

These discussions are crucial as they aim to address the ongoing tensions that have characterized U.S.-China trade relations in recent years. The meetings took place against a backdrop of heightened scrutiny and economic competition between the world’s two largest economies. U.S. Treasury Secretary Scott Bessent, who participated in the talks, is expected to provide further insights later today.

The discussions began with a nearly five-hour meeting on Monday at the Swedish Prime Minister's office, followed by a breakfast meeting with Prime Minister Ulf Kristersson on Tuesday. Bessent has stated that the Chinese delegation has displayed a pragmatic approach, which he believes is essential for moving forward. He remarked, “We have had a lot of tensions over the years. We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations.”

The ongoing tariff situation is particularly significant as the United States has recently negotiated tariff agreements with other major trading partners, including the European Union, Japan, and Britain. The U.S. previously announced a temporary pause, known as the 90-day pause, which is set to expire on August 12, 2025. After this period, the tariffs had been expected to escalate to triple-digit percentages, a situation that sent shockwaves through global markets.

As part of the dialogue, the two countries also discussed critical issues affecting their economic relationship, such as access for American businesses to the Chinese market, Chinese investments in the U.S., and the ongoing trade of fentanyl precursors from China to the United States. Additionally, the talks addressed the implications of Chinese purchases of oil from Russia and Iran, alongside American strategies to limit exports of advanced technologies, especially semiconductor components essential for AI systems.

The Stockholm meetings have been perceived as a potential precursor to a summit between U.S. President Donald Trump and Chinese President Xi Jinping, which could further solidify agreements on trade policies. However, Trump’s recent comments on his social media platform indicate that he does not currently seek a summit without a clear agenda from the Chinese side.

Wendy Cutler, former U.S. trade negotiator and Vice President at the Asia Society Policy Institute, highlighted the complexities involved in the negotiations, stating, “The rollover of tariff rates should be the easy part. However, Beijing has learned lessons from the first Trump administration and will not agree to a one-sided deal.”

This latest round of discussions reflects a broader trend toward stabilization in U.S.-China trade relations, with both parties recognizing the need for collaborative engagement to navigate their economic interdependencies. As the world watches, the outcomes of these negotiations could set the tone for the future of global trade dynamics and international relations.