There is a cautious flicker of hope in global trade after U.S. President Donald Trump and Chinese President Xi Jinping agreed to continue a pause in their tit-for-tat battle of tariffs, offering a reprieve to families, firms, and investors. However, two days of high-level talks in Stockholm generated an agreement that signified a tactical pause rather than a comprehensive recalibration of the ailing U.S.-China economic partnership.
While no formal agreement was signed, Beijing stated the talks were “intense”
Discussions led by U.S. Secretary Scott Bessent and Chinese Vice Premier He Lifeng concluded in an agreement to make efforts to retain the 90-day pause of August 12. The “pause” was originally agreed to during meetings in Geneva and London and aimed to prevent the imposition of three-digit tariffs that could have resulted in an all-out embargo.
The U.S. presently levies a 30% tariff on Chinese products, while China levies a 10% fee on American goods. The hope is that the Stockholm talks would prevent the previous years’ punitive taxation levels. However, U.S. President Trump, talking on board Air Force One, admitted that he was not able to finalize the agreement.
A long-term deal before the end of the year
Trump stated that a deal might be made before the end of the year when asked whether it was possible to arrange a meeting with Xi. On his Truth Social account, he added that he won’t propose a conference but may travel to China if Xi invites him.
Nonetheless, there are major sticking points. U.S. officials expressed concerns over China’s purchase of Iranian oil, its provision of dual-use technology to Russia, and its overproduction of goods that distort global markets, Bessent said:
“We just need to de-risk with certain strategic industries.”
Bessent also named rare earths, semiconductors, and pharmaceuticals, among others, with particularly high levels of worry. China, for its part, wants fewer export controls and fewer U.S. tariffs, especially on technology.
Experts predict a one-sided trade deal will be unpalatable to Beijing
It is worth noting that the United States’ own demands – American businesses’ access to the Chinese market, and the regulation of Chinese investing in the U.S. were not resolved. Still, both delegations previously agreed to continue their intense communications and eventually meet again.
The economic gains are abundant. The trade war has scrambled supply lines, increased prices for customers, and jeopardized international relations.
If the nationalistic covenant failed to continue the truce, it would certainly relieve the issue. On the flip side, a fruitful encounter between Trump and Xi could pave the way for short-term agreements that will settle trade problems among the world’s two preeminent countries.
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A host of companies covered a host of companies from Chips, which are uncommonly susceptible to exchange, wreaking havoc.
However, the future is still open. Domestic manufacturing and the trade deficit have been a top priority for Trump, and he wants to be able to say that he has achieved his goal. Xi, however, does not want to come across as having lost China’s industrial might and global influence.
Although it is not impossible, given the preceding contradictions, it is difficult for both sides to come to an optimal agreement. The Stockholm agreement, as mentioned earlier, grants the two warring sides a clean victory, while at the same time postponing the discussion of two points of contention.
Thus, according to Bessant, the visit was very constructive. Whether this truce is merely a temporary pause in the signing of a final peace agreement will only be revealed by the upcoming process. According to sources, another meeting is expected in 90 days, and there will most likely be a second meeting between Trump and Xi.