U.S. China resume trade talks in Stockholm to extend 90-day tariff truce amid global economic pressures

U.S. and Chinese economic officials resumed high-level trade negotiations in Stockholm on July 28, 2025, with both sides seeking to extend a 90-day truce on tariffs amid escalating global economic pressures [1]. Led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent, the talks mark the third round of direct discussions since the two nations paused retaliatory tariffs in early 2024. The primary objective is to avoid renewed trade hostilities as global growth slows and energy prices remain elevated, though unresolved disputes over market access and intellectual property persist [2].

The negotiations followed a five-hour session earlier in the week, during which both sides engaged in a “constructive exchange” on supply chain and agricultural trade issues [4]. However, no immediate agreement on tariff reductions was announced, signaling a focus on delay rather than resolution. U.S. Treasury Secretary Scott Bessent noted that a 90-day truce extension is under consideration, aligning with previous patterns where temporary pauses have been used to manage tensions during domestic political cycles [3]. If formalized, the extension would mirror earlier cycles, providing temporary stability without addressing structural trade imbalances.

The potential extension has sparked market sensitivity, particularly in cryptocurrency sectors. Past 125% and 145% tariff changes have historically triggered volatility in digital assets, with Bitcoin and Ethereum experiencing short-term volume spikes during periods of heightened U.S.-China tensions [3]. While no immediate impact on decentralized finance (DeFi) total value locked was reported, analysts warn that further 90-day truce extensions or unchanged tariffs remain likely outcomes, based on past negotiation patterns [6]. U.S. Trade Representative Jamieson Greer emphasized the uncertainty, stating, “It’s been a bumpy ride… the big question here in Stockholm is whether they can kick that can down the road, extend that deadline perhaps another 90 days” [3].

Political pressures complicate the negotiations. The Biden administration faces domestic demands to appear firm on China ahead of the 2026 midterms, while China grapples with a fragile economic recovery in manufacturing and property sectors [5]. Critics argue recurring truce extensions delay necessary reforms, such as China’s need to reduce state-backed industrial policies and open financial markets. U.S. lawmakers from both parties have expressed skepticism about Beijing’s willingness to make meaningful concessions [5].

The talks concluded without an immediate announcement, with officials confirming continued discussions in August. A formal 90-day extension, if agreed, would align with short-term strategies to manage tensions but fail to resolve core disputes. For now, the focus remains on preventing a new tariff round, even as deeper disagreements remain unresolved [2].

Sources:

[1] [title1: US, China to launch new talks on tariff truce extension] [url1: https://www.reuters.com/world/china/us-china-launch-new-talks-tariff-truce-extension-easing-path-trump-xi-meeting-2025-07-28/]

[2] [title2: From Xi-Trump meet to tariff truce, here's what to expect] [url2: https://www.msn.com/en-in/news/world/us-china-set-to-resume-stockholm-talks-from-xi-trump-meet-to-tariff-truce-here-s-what-to-expect/ar-AA1JpJle]

[3] [title3: US, China to resume tariff talks in effort to extend truce] [url3: https://cpecnews.com/u-s-and-china-resume-trade-talks-in-stockholm-amid-looming-tariff-deadline/]

[4] [title4: US and China hold five-hour trade talks in Sweden] [url4: https://www.geo.tv/latest/616238-us-china-hold-five-hour-trade-talks-in-sweden]

[5] [title5: U.S. And China Officials Meet In Stockholm To Discuss] [url5: https://www.canadianmanufacturing.com/manufacturing/us-and-china-officials-meet-in-stockholm-to-discuss-how-to-ease-trade-tensions-311182/]

[6] [title6: US, China hold five-hour trade talks in Sweden] [url6: https://www.geo.tv/latest/616238-us-china-hold-five-hour-trade-talks-in-sweden]