• Trade envoys from the United States and China entered a second day of deliberations in Stockholm on Tuesday, seeking to stabilize global commerce by recalibrating punitive tariffs and addressing broader economic frictions.

STOCKHOLM, Sweden (TDR) — Top U.S. and Chinese trade officials continued closed-door negotiations Tuesday in the Swedish capital, where both sides are endeavoring to forestall a resurgence of debilitating tariffs set to expire August 12, threatening renewed disruption in the world’s two largest economies.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng offered no public statements following Monday’s five-hour session at the Swedish prime minister’s official residence. Yet, optimism cautiously grew after a working breakfast Tuesday with Swedish Prime Minister Ulf Kristersson and U.S. Trade Representative Jamieson Greer, suggesting that preliminary progress had been made.

Tense But Constructive Talks

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The meetings follow President Donald Trump’s dramatic April proclamation of “Liberation Day” tariffs—a strategic gambit that levied sweeping duties on dozens of nations, including longstanding allies. While subsequent trade pacts were secured with the United Kingdom, Japan, and the European Union, China remains the most formidable and unresolved counterparty.

“The Chinese have been very pragmatic,” Greer said on MSNBC’s Morning Joe, in remarks later shared on X. “Whether there will be a deal or not, I can’t say… But the conversations are constructive and they’re going in the right direction.” Watch clip here

The existing détente—brokered during bilateral talks in Geneva this past May—imposed a 90-day pause on escalated tariffs. Currently, U.S. duties stand at 30% on Chinese goods, while China imposes 10% tariffs on U.S. exports. Absent an extension or agreement, those rates could snap back to triple-digit levels, which rattled world markets just three months ago.

Broader Issues on the Table

Beyond tariff moderation, the Stockholm agenda includes deeper concerns: U.S. access to Chinese markets, Beijing’s continued purchases of Russian and Iranian oil, Chinese-linked fentanyl components arriving in the U.S., and American limits on critical AI-enabling chip exports.

“Trump’s team is facing a large and confident partner that is more than willing to retaliate against U.S. interests,” said Wendy Cutler, a former trade negotiator now at the Asia Society Policy Institute. She added that a simple rollover of tariffs “should be the easy part,” but warned that Beijing “will not buy into a one-sided deal this time around.”

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Cutler’s observation underscores a new dynamic in the U.S.-China trade saga: parity of will. While Washington seeks leverage through tariffs and technology controls, Beijing is wielding its economic gravity with increasing confidence, particularly in Eurasian energy and supply-chain partnerships.

Symbolism and Spectacle

Outside the talks, Stockholm’s historic waterfront was transformed into a security corridor. Police cordoned off the area as crowds gathered, flanked by international media. The Swedish prime minister’s office flew the American and Chinese flags side by side—a powerful tableau of tension and diplomacy in motion.

The question now is whether these flags will still stand for enduring negotiation—or mere symbolism—come August.

Will the world’s two superpowers choose mutual restraint or another round of economic brinkmanship?

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