Trade Tensions Continue: Trump Weighs 90-Day Tariff Delay on China

President Trump is facing pressure to grant a 90-day delay on imposing significant tariffs on China as trade negotiators from both nations strive to outline a potential trade agreement between the two largest economies in the world.

Ongoing Negotiations in Stockholm

Recent discussions held over two days in Stockholm concluded without a definitive agreement. However, U.S. negotiators confirmed a commitment to continue talks in the upcoming weeks.

Positive Outlook on Trade Talks

In a press conference following the meeting, Treasury Secretary Bessent described the atmosphere as “wholesome” and emphasized a constructive tone throughout the discussions.

• Key Takeaway: “The overall tone of the meeting was very constructive,” Bessent stated, underscoring a shared goal of reducing trade tensions.

Bessent, alongside U.S. Trade Representative Jamieson Greer, is scheduled to meet with President Trump at the White House to discuss the progress in negotiations and the potential pause in tariffs on Chinese goods.

Trump’s Decision Pending

On Air Force One, returning from Scotland, Trump remarked, “We’ll either approve it or not,” highlighting the importance of his administration’s decision in the ongoing negotiations.

Insights from Chinese Negotiators

Chinese negotiator Li Chenggang described the discussions as “in-depth, candid, and constructive.” He expressed mutual recognition of the necessity to preserve a stable China-U.S. trade relationship.

• Quote: "Both sides are fully aware of the importance of safeguarding a stable and sound China and U.S. trade and economic relationship,” Li conveyed.

Historical Context of Tariffs

Past discussions in Geneva contributed to a temporary 90-day pause on the 145 percent tariffs initially proposed by President Trump in April, which were set to take effect on August 12.

• Context: The ongoing negotiations are crucial in shaping the bilateral trade dynamics between the U.S. and China.

Strategic Industrial Focus

Bessent emphasized, “We don’t want to de-couple. We just need to de-risk in strategic industries,” mentioning critical sectors like rare earths, semiconductors, and pharmaceuticals.

• Objective: The goal is to create a balanced and mutually beneficial relationship amid rising tensions.

Broader Trade Agreements

The discussions with China follow President Trump’s recent agreement on a trade framework with the European Union, indicating a busy period for U.S. trade policy.

Bessent noted that the Chinese delegation was somewhat taken aback by the scale of the agreements reached with Japan and the EU, hinting at their expectations during discussions.

Upcoming Trade Deadlines

Most countries now face a pressing Friday deadline to establish trade agreements with the United States to evade reciprocal tariffs. Commerce Secretary Howard Lutnick reaffirmed that this deadline remains unchanged.

• Critical Date: “August 1 is the date that we’re setting all these rates, and they are off to the races after that,” Lutnick informed CNBC.

For more information on tariffs and international trade relations, visit the U.S. Trade Representative’s official website and stay updated on the latest developments in the ongoing trade negotiations.