US Treasury Secretary Scott Bessent on Tuesday signalled that Washington and Beijing are likely to extend their temporary suspension of tariffs when officials meet in Stockholm, Sweden, next week.Speaking in an interview with Fox Business, Bessent said the discussions, scheduled for Monday and Tuesday, would likely result in an extension of the current 90-day pause on most tariffs between the world’s two largest economies. That suspension, agreed upon in mid-May, is set to expire on August 12.
“We’ll be working out what is likely an extension during talks in Stockholm,” Bessent said. “I think trade is in a very good place with China.”
Bessent also indicated the US hopes to use the meetings to press Beijing on broader economic issues, including reducing manufacturing overcapacity and encouraging the development of China’s consumer economy. Other items on Washington’s agenda include addressing Chinese purchases of sanctioned Russian and Iranian oil, and Beijing’s role in supporting Russia’s ongoing invasion of Ukraine.“I think we’ve moved to a new level with China, where it’s very constructive,” Bessent said. “We’re going to be able to get a lot of things done, now that trade has kind of settled in at a good level.”
“We’ll be working out what is likely an extension during talks in Stockholm,” Bessent said. “I think trade is in a very good place with China.”
Bessent also indicated the US hopes to use the meetings to press Beijing on broader economic issues, including reducing manufacturing overcapacity and encouraging the development of China’s consumer economy. Other items on Washington’s agenda include addressing Chinese purchases of sanctioned Russian and Iranian oil, and Beijing’s role in supporting Russia’s ongoing invasion of Ukraine.“I think we’ve moved to a new level with China, where it’s very constructive,” Bessent said. “We’re going to be able to get a lot of things done, now that trade has kind of settled in at a good level.”
The upcoming talks mark another step forward following months of negotiations that saw both sides gradually roll back steep tariffs imposed earlier this year.
In April, President Donald Trump’s administration raised tariffs on Chinese goods to an effective blanket rate of 145%, part of a broader effort to reshape the global trade order. Beijing retaliated with 125% tariffs on US imports.
However, progress was made in Geneva in May when the two sides agreed to lower their respective tariff rates by 115%. A subsequent meeting in London in late June reaffirmed that preliminary agreement.
(Edited by : Ajay Vaishnav)
