U.S. Treasury Secretary Eyes Trade Deadline Extension in China Talks

GENEVA, Switzerland — U.S. Treasury Secretary Scott Bessent announced plans for trade discussions with Chinese officials in Stockholm next week, where they will likely consider extending a crucial trade agreement before it expires on August 12.

In May, the U.S. and China reached a 90-day suspension of heavy tariffs as negotiations continued. This suspension has fostered a more constructive dialogue between the two nations. “Trade is in a very good place with China,” Bessent said during a Fox Business interview.

Swedish Prime Minister Ulf Kristersson confirmed on Tuesday that Sweden will host the upcoming talks. He emphasized the importance of these discussions, stating, “It is positive that both countries wish to meet in Sweden to seek mutual understanding.” The negotiations carry significant implications for global trade and the economy.

Bessent aims to address multifaceted trade concerns, including China’s manufacturing practices and its imports of sanctioned oil from Russia and Iran. “We hope they can pull back on the glut of manufacturing and concentrate on building a consumer economy,” he noted.

Trade between the two countries has seen changes following earlier negotiations that lowered tariff rates from an alarming 145% on Chinese goods to 30%. However, Bessent acknowledged that tariffs on goods from other countries, set to take effect on August 1, remain unchanged.

Bessent has expressed confidence in the ongoing negotiations, indicating potential announcements of new trade deals in the days to come. “We’re about to announce a rash of trade deals in the coming days,” he said, highlighting the government’s commitment to fostering substantial investments in sectors such as autos and pharmaceuticals.

As the deadline for the tariff agreement approaches, both nations are working diligently to avoid reverting to previous, higher tariff rates that could disrupt the global trading landscape.