After months of threatening to impose tariffs elevated to its commercial partners, Trump has achieved agreements with the European Union, Japan and other countries, but China’s powerful economy and their control over world flows of rare earths make these conversations especially complex.
In May, both parties turned back in the imposition of three -digit tariffs with each other, which would have meant a bilateral commercial embargo. However, world supply chains and financial markets could face a new crisis if an agreement is not reached.
Trump will have the last word about the extension of the truce, Treasury Secretary Scott Besent told journalists. Another option is a 90 -day extension, the American commercial representative, Jamieson Greer, added.
“We will inform you (to Trump) about the process we have carried out here. Without a doubt, we have held constructive meetings, to return with a positive report. But the extension of the pause will be decided,” Greer said after the conversations held in Rosenbad, the Swedish prime minister’s office in the center of Stockholm.
Besent said that there would probably be another meeting between US and Chinese officials in about 90 days, and that agreements on the flow of Chinese rare earths were being perfected after previous conversations in Geneva and London.
“A good personal interaction, good mutual respect has been established. I think we understand its agenda much better,” he said.
Underlining what is at stake, the International Monetary Fund on Tuesday raised its world growth forecast, but pointed out as an important risk the possibility of a tariff rebound.
Active communication
China’s main commercial negotiator, Li Chenggang, said that both parties fully recognize the importance of maintaining a stable and solid economic relationship.
“The economic and commercial teams of China and the United States will maintain active communication, exchange opinions on economic and commercial issues in a timely manner and will continue to promote the stable and healthy development of bilateral economic and commercial relations,” Li said.
The conversations could pave the way for a possible meeting between the US president, Donald Trump, and his Chinese couple, Xi Jinping, later in the year, although the Republican denied Tuesday having done everything possible to look for it.
Stockholm meetings also included a long debate about both economies, in which Greer and Besent emphasized the need for China to go from a manufacturing economy driven by the State and exports to another driven by the increase in consumer demand, which would favor US exports.
