Trump-Xi Summit Nears: Tariffs Shape Trade Talks
US-China Stockholm talks pave way for major summit.
Top US and Chinese officials are meeting in Stockholm to stabilize tariffs and lay groundwork for a crucial Trump-Xi summit later this year, aiming for a lasting trade agreement between the world’s largest economies. Led by Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, the discussions follow months of tense negotiations after President Donald Trump’s tariff hikes, which hit 145% on Chinese goods in April, unsettling global markets.
Previous talks in Geneva and London eased tensions, with the US now levying a 30% tariff and China retaliating with 10%, alongside existing duties. “We’ve reached a status quo,” Bessent told MSNBC, focusing on reducing the US’s $295.5 billion trade deficit by boosting exports to China and encouraging its consumer-driven growth. Beijing, seeking “more consensus and less misperception,” pushes to lift a 20% fentanyl-related tariff Trump imposed, citing China’s failure to curb precursor chemicals. China, which recently tightened controls on two fentanyl ingredients, insists the US address its domestic demand issues.
Wendy Cutler, a former US trade negotiator, emphasized that Stockholm sets the stage for a fall Trump-Xi meeting, with Beijing prioritizing detailed preparations. The talks will address China’s industrial overcapacity, fentanyl chemical controls, and commercial commitments for the summit. Sean Stein of the US-China Business Council noted that businesses are monitoring for signals on market access reforms in China.
Also Read: Modi and Cuban President Forge Stronger Ties at BRICS Summit
Gabriel Wildau of Teneo expects no immediate tariff cuts but suggests a final deal could remove the fentanyl tariff, aligning with 15-20% rates in recent US agreements with Japan and others. China’s near-$1 trillion global trade surplus and dominance in electric vehicles intensify tensions. Chinese Premier Li Qiang acknowledged global concerns, stating, “Factories run 24 hours a day.”
Bessent aims to discuss China’s purchases of sanctioned Russian and Iranian oil, but Wildau notes Beijing may seek US concessions, like reduced military presence in East Asia, potentially facing Washington’s resistance. The Stockholm talks will shape the path to a transformative Trump-Xi summit, balancing economic cooperation and geopolitical challenges.
Also Read: Trump’s Philippines Deal: 19% Tariff, US Pays Nothing!
