Treasury Secretary Scott Bessent confirmed negotiations will proceed ahead of a looming deadline, with President Trump having the final say on any extension.
US and Chinese officials will continue negotiations over extending a crucial tariff truce set to expire in two weeks. Following two days of high-stakes talks in Stockholm, Treasury Secretary Scott Bessent confirmed he will brief President Donald Trump on the remaining issues. Trump will ultimately make the final decision on whether to prolong the truce and avert an escalating trade war.
ALSO READ UK's Palestine Move: A 'Crowbar' for Peace
Why and How the Talks are Happening The third round of negotiations in less than three months wrapped up as both sides work to resolve differences before an August 12 deadline. The goal is to extend a 90-day suspension of sky-high tariffs that threaten bilateral trade. Bessent noted that after recent US deals with Japan and the EU, his Chinese counterparts were in "more of a mood for a wide-ranging discussion." Chinese negotiator Li Chenggang described the talks as "candid" and "in-depth."
Official Statements and Sticking Points While progress was made, Bessent admitted, "There’s still a couple of technical details to work out." A key issue for the US is ensuring the flow of critical materials. US Trade Representative Jamieson Greer said Washington wants assurances on magnet supplies so that "we don’t ever want to talk about magnets again," calling China’s resumption of rare earths exports its biggest concession. For its part, Beijing is seeking a reduction in the 20% tariffs on chemicals the US claims are used to make fentanyl.
ALSO READ Russia Quake vs. History's Deadliest Tsunamis
Market Impact and Political Tensions The talks are set against a backdrop of rising global trade tensions. The US recently announced a preliminary tariff deal with the European Union, though Commerce Secretary Howard Lutnick noted there was "plenty of horse trading left to do." Meanwhile, President Trump pushed back against speculation that he was seeking a summit with Chinese President Xi Jinping, posting on social media, "I am not SEEKING anything! ... no interest!"
The complex relationship extends beyond commerce, strained by issues like a failed US stopover for Taiwan’s president and China's use of its dominance in rare earth minerals to gain leverage on advanced chips. The Trump administration also faces pressure from China hawks in Washington who are concerned that the US is giving up too much to secure a deal.
ALSO READ N. Korea Demands US Accept Nuclear Status, Rejects Denuclearization
With the clock ticking toward the August 12 deadline, both sides have agreed to continue their dialogue. Treasury Secretary Bessent will present the final details to President Trump, who holds the ultimate decision-making power. Extending the truce for another 90 days remains an option, but the final outcome for the world's two largest economies hangs in the balance.
Disclaimer: This article was generated with the support of AI and
edited for clarity by the PulseNext team. Except for the headline and featured
image, the content is sourced from a syndicated feed. For details, please refer
to our [Terms & Conditions].
Post a Comment