Amid ongoing trade tensions, top officials from the United States and China are scheduled to meet in Stockholm to address pressing trade issues.
What Happened: This meeting marks the third encounter this year between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, as reported by AP News on Sunday.
The discussions in Stockholm are expected to maintain the current tariff levels while both nations work towards a potential meeting between their leaders later in the year.
President Donald Trump had previously proposed tariffs, including a 145% import tax on Chinese goods, which disrupted global trade. Bessent mentioned on MSNBC that the U.S. and China have reached a “status quo,” with the U.S. imposing a 30% tariff on Chinese imports and China responding with a 10% tariff.
“We have the confines of a deal with China,” said Trump on Friday, according to the report.
The Stockholm talks aim to address issues like China’s industrial overcapacity and fentanyl-related tariffs. The Chinese embassy in Washington expressed hope for increased consensus and cooperation. The meeting could pave the way for a future summit between Trump and Chinese leader Xi Jinping, with discussions focusing on commercial announcements and structural reforms.
Beijing is likely to press for the removal of the 20% tariff imposed by Trump over the fentanyl issue. China has taken the position that the cause of the fentanyl crisis lies in the U.S. Washington says China is not doing enough to regulate the chemicals used to make the drug, according to the report.
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Why It Matters: The trade discussions come at a time when Trump has been actively reshaping the U.S.’s trade relationships globally.
On Sunday, Trump announced a 15% tariff trade agreement with the European Union, ending months of uncertainty. This agreement marked a significant reduction from the previously threatened 30% tariff.
Additionally, Trump recently declared a $550 billion trade deal with Japan, which is expected to create hundreds of thousands of jobs and open Japanese markets to U.S. products.
As the U.S. continues to navigate its trade policies, the outcome of the Stockholm talks could significantly impact the global economic landscape, especially in light of Trump’s unilateral tariff strategy that bypasses traditional trade agreements.
Trump announced plans to unilaterally impose new tariff rates on trading partners through formal letters, bypassing traditional trade agreements. He has dismissed ongoing negotiations as unnecessary, saying the U.S. would simply inform countries of their new rates—up to 50%—without meetings.
Photo Courtesy: Miha Creative on Shutterstock.com
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
