The potential extension of the tariff pause between the United States and China is contingent on President Donald Trump‘s approval, according to U.S. negotiators.
What Happened: U.S. Treasury Secretary Scott Bessent stated on Tuesday that President Trump holds the ultimate authority over the trade deals and the impending tariff truce, CNBC reported. This announcement came after high-level trade officials from both countries concluded discussions in Stockholm, Sweden, marking their third round of negotiations since May.
“We’re going to head back to Washington, D.C. We’re going to talk to the president about whether that’s something that he wants so do,” said U.S. Trade Representative Jamieson Greer to reporters after the talks.
The President "has final say on all the trade deals,” stated Bessent.
Trump, while engaging with reporters on Air Force One, said he would receive a briefing on the negotiations’ status on Wednesday, following a “very good” meeting between U.S. and Chinese officials.
Chinese trade negotiator Li Chenggang confirmed that both sides agreed to continue pushing for an extension of the 90-day pause on most U.S. “reciprocal” tariffs on Chinese goods, as well as most of Beijing’s retaliatory measures. This pause is set to expire on Aug. 12.
If no extension is agreed upon by the deadline, U.S. tariffs on Chinese goods will return to their April levels, Bessent told reporters following Tuesday’s discussions, a scenario Bessent referred to as “boomeranging”.
Why It Matters: The U.S. and China have been engaged in a prolonged trade dispute, which has had significant global economic implications. The lack of a trade agreement between the two countries could lead to a substantial drop in Chinese exports to the U.S., as projected by the Observatory of Economic Complexity. China stands to lose approximately $488 billion in exports to the U.S., while the U.S. could face a potential loss of over $100 billion in exports to China.
The potential extension of the tariff pause is a crucial development in this ongoing trade war.
Bessent also noted that the negotiators did not address TikTok, whose future in the U.S. remains uncertain following the passage of a law requiring its sale to avoid a ban. "We are very careful to keep trade and national security separate," the Treasury Secretary said.
The Treasury Secretary offered a cautiously optimistic view of the talks, noting that both sides' positions are becoming more ‘refined’ and that mutual respect and understanding have grown.
Notably, Bessent also downplayed concerns about the upcoming tariff deadline for other countries, saying negotiations with the U.S. can still continue.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
