US-China Trade Talks Begin in Stockholm as Trump-Xi Summit Looms/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. and Chinese officials are meeting in Stockholm to ease trade tensions and pave the way for a Trump-Xi summit. Tariff freezes and fentanyl-related issues are central to talks. Businesses and policymakers await clarity on structural reforms and export access.
US-China Trade Talks Quick Looks
- U.S. and Chinese delegations meet in Stockholm for third 2025 round
- Goal: freeze tariffs and plan Trump-Xi summit later this year
- Talks follow Trump’s 145% tariff hike on Chinese goods
- Tariffs currently remain at 30% (US) and 10% (China)
- Beijing seeks removal of 20% fentanyl-linked tariff
- Discussions expected on overcapacity, oil trade, and market access
- Final trade agreement unlikely in Stockholm, analysts say
US-China Trade Talks Begin in Stockholm as Trump-Xi Summit Looms
Deep Look
WASHINGTON (AP) — As trade tensions simmer, top U.S. and Chinese officials are gathering in Stockholm for high-stakes negotiations that could shape the future of the global economy. The meeting, featuring Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, marks the third round of trade talks this year and comes amid growing anticipation for a summit between President Donald Trump and Chinese President Xi Jinping later in 2025.
Analysts expect both sides to maintain current tariff levels while working toward broader trade alignment. With the U.S. currently imposing a 30% tariff on Chinese imports and China responding with a 10% duty, the Stockholm talks aim to stabilize relations and pave the way for deeper cooperation.
President Trump, speaking before departing for Scotland, said, “We have the confines of a deal with China,” signaling cautious optimism. Bessent echoed this sentiment on MSNBC, noting a “status quo” has been reached since previous talks in Geneva and London.
For the U.S., key priorities include reducing its $295.5 billion trade deficit with China and pushing Beijing to open up market access for American businesses. Structural reforms aimed at encouraging Chinese domestic consumption are also on the agenda.
The Chinese embassy in Washington released a statement expressing hope for “more consensus and cooperation and less misperception” from the discussions.
Wendy Cutler, a former U.S. trade negotiator, emphasized the talks’ strategic importance, stating that Stockholm could be critical in “setting the stage” for a fall Trump-Xi summit. She expects the two nations to outline joint announcements, address persistent irritants like China’s industrial overcapacity, and confront the issue of fentanyl chemical exports.
Fentanyl remains a particularly contentious issue. Trump imposed a 20% tariff earlier this year in response to what he called China’s failure to control precursor chemicals used in fentanyl production. While China retaliated with additional tariffs on American coal, LNG, and agricultural exports, it has since placed two fentanyl ingredients under tighter control, signaling a potential shift in posture.
Sun Yun of the Stimson Center believes Beijing will demand that the fentanyl tariff be lifted. However, analysts like Gabriel Wildau from consultancy Teneo say tariff relief is unlikely in the immediate term but could be included in a future final deal. He anticipates the U.S. may ultimately settle for a tariff range of 15% to 20%, similar to recent agreements with Japan, Vietnam, and Indonesia.
Beyond fentanyl, U.S. officials are pressing China on industrial overproduction, especially in emerging sectors like electric vehicles, semiconductors, and green technologies. Chinese Premier Li Qiang recently acknowledged global concerns about China’s manufacturing dominance but defended his country’s work ethic and industrial capacity.
“Chinese people are too hardworking,” Li said during a meeting with European Commission President Ursula von der Leyen. “Factories run 24 hours a day.” He added that Beijing is aware of concerns about global supply-demand imbalances and is open to dialogue.
Energy trade is another flashpoint. Bessent confirmed that the U.S. will raise concerns about China’s ongoing oil imports from Russia and Iran. Wildau suggests that China may push back by demanding U.S. concessions on military presence in East Asia and diplomatic ties with Taiwan—conditions that would likely trigger political backlash in Washington.
Sean Stein, president of the U.S.-China Business Council, said businesses are watching closely. What companies seek most from Stockholm is “the atmosphere” and signals about whether a presidential summit is realistic.
Ultimately, the talks appear aimed at forging a modest trade arrangement, rather than a sweeping agreement. Wildau predicts a limited deal anchored around fentanyl-related measures and small tariff adjustments—an outcome that would satisfy many China hawks within the Trump administration.
Whether this round of negotiations leads to a formal Trump-Xi summit remains to be seen, but Stockholm is emerging as a pivotal stop in the complex dance of U.S.-China trade diplomacy.
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