US says Trump has 'final call' on China trade truce

US says Trump has 'final call' on China trade truce

China's economy is facing headwinds, with sluggish domestic consumption and tariff challenges for its exports
China's economy is facing headwinds, with sluggish domestic consumption and tariff challenges for its exports. Photo: Hector RETAMAL / AFP/File
Source: AFP

China and the United States agreed Tuesday to hold further talks on extending their tariff truce, but a top US trade official stressed that President Donald Trump would make any "final call."

The world's top two economies met for a second day of negotiations in Stockholm, with both sides seeking to avert tariffs from returning to sky-high levels that had ground trade between the rivals to an effective standstill.

The meeting in a Swedish government building, led on the Chinese side by Vice Premier He Lifeng and Treasury Secretary Scott Bessent for the Americans, ended without a resolution but with the US side voicing optimism.

Neither government has made public any details from the talks, which started on Monday, although US Trade Representative Jamieson Greer said Trump would have the "final call" on any extension in the truce.

"Nothing has been agreed until we speak with President Trump," added Bessent, calling the tone of the talks "very constructive".

Read also

Chinese, US officials meet for 2nd day of trade talks in Stockholm

The negotiations are taking place in the wake of a trade deal struck over the weekend that set US tariffs on most European Union imports at 15 percent, but none on American goods going to the EU.

The truce between China and the United States has temporarily set fresh US duties on Chinese goods at 30 percent, while Chinese levies on trade in the other direction stand at 10 percent.

That accord, reached in Geneva in May, brought down triple-digit tariffs each side had levelled at the other after a trade war sparked by Trump spiralled into a tit-for-tat bilateral escalation.

The 90-day truce is meant to end on August 12. But there are indications both delegations want to use the Stockholm talks to push the date back further.

The South China Morning Post, citing sources on both sides, reported on Sunday that Washington and Beijing are expected to extend their tariff pause by a further 90 days.

Read also

Stock markets fall as trade relief fades, eyes on data and earnings

Trump said he would be briefed again by Bessent on Wednesday. "We'll either approve it or not," he told reporters aboard Air Force One as he returned from Scotland.

Trump's threats

Separately, Trump has threatened to hit dozens of other countries with stiffer tariffs from Friday this week unless they reach trade deals with Washington.

Among them are Brazil and India, with the South American giant facing a threat of 50 percent tariffs.

Asked about Friday's deadline, Bessent told CNBC: "It's not the end of the world if these snapback tariffs are on for anywhere from a few days to a few weeks, as long as the countries are moving forward and trying to negotiate in good faith."

Trump has already announced deal outlines with five countries -- Britain, Vietnam, Japan, Indonesia and the Philippines -- as well as the one with the 27-nation EU.

Beijing says it wants to see "reciprocity" in its trade with the United States. Foreign ministry spokesman Guo Jiakun said dialogue was needed "to reduce misunderstandings".

Read also

Most markets rise, euro boosted after EU strikes US trade deal

The previous round of China-US talks was held in London.

Analysts said many of the trade deals Trump has been publicising were leaning more on optics than on details.

Stephen Innes, managing partner at SPI Asset Management, a firm that advises on currency exchange and commodities, said an extension of the 90-day truce between China and the United States could reinforce that view.

"That truce could set the stage for a Trump – (President) Xi (Jinping) handshake later this year -- another risk-on carrot for markets to chew," he said.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Page was generated in 1.427344083786