US-China Stockholm talks end without truce, Trump to decide on new tariff-pause deadline

No major breakthroughs were announced after US and Chinese officials finished two days of discussions in Stockholm on Tuesday (July 29). The talks were aimed at resolving longstanding economic disputes and containing an escalating trade war between the world’s two largest economies.

After the talks, China’s top trade negotiator Li Chenggang declared that the two sides agreed to push for an extension of a 90-day tariff truce struck in mid-May. However, the official didn’t specify when and for how long the extension comes into effect.

Meanwhile, US President Donald Trump is expected to take a final call on maintaining a tariff truce with China, Bloomberg reported.

Negotiations between the two countries have taken centre stage as President Trump, after months of threatening steep tariffs on trading partners, seeks to stabilise economic relations with the world’s second-largest economy.

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Discussions with China ‘challenging’ for US

While trade agreements have been secured with the European Union, Japan, and others, China’s dominance in global rare earth markets and its economic might make these discussions uniquely challenging.

In May, both nations narrowly avoided a trade war that could have seen triple-digit tariffs imposed, effectively creating a bilateral trade embargo.

Without a deal, global supply chains and financial markets risk renewed disruption.

IMF sounds alarm

The International Monetary Fund (IMF) underscored these concerns on Tuesday, raising its global growth forecast but warning that a resurgence in tariff rates poses a significant threat to economic stability.

China’s Vice Premier He Lifeng, who led the Chinese delegation, highlighted the broader implications of the talks, stating, “A stable, healthy and sustainable China-US economic and trade relationship serves not only the two countries’ respective development goals but also contributes to global economic growth and stability.”

However, he offered no details on how an extension of the agreement might be structured.

US Treasury Secretary Scott Bessent described the negotiations as a “very fulsome two days with the Chinese delegation.”

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He highlighted key US concerns, including China’s purchases of Iranian oil, its provision of dual-use technology to Russia that could be used in military applications, and its overproduction of manufactured goods that exceeds global demand.

Bessent stressed the need to address vulnerabilities in strategic sectors, noting, “We just need to de-risk with certain, strategic industries, whether it’s the rare earths, semiconductors, medicines, and we talked about what we could do together to get into balance within the relationship.”