&w=3840&q=100)
US-China trade talks resume in Stockholm as August 12 tariff deadline looms
A US and Chinese flag flutter outside Sweden's government offices "Rosenbad" in Stockholm, Sweden, July 29, 2025, ahead of the second day of trade talks between China and the US. Reuters
US and Chinese officials began a second day of talks in Stockholm on Tuesday to resolve longstanding economic disputes and step back from an escalating trade war between the world's two biggest economies.
The meetings may not yield immediate large breakthroughs but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May. It may also pave the way for a potential meeting between US President Donald Trump and Chinese President Xi Jinping later in the year, though Trump on Tuesday denied going out of his way to seek one.
STORY CONTINUES BELOW THIS AD
The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister's office in central Stockholm. Neither side made statements after the first day of talks.
US Treasury Secretary Scott Bessent was seen arriving at Rosenbad on Tuesday morning after a separate meeting with Swedish Prime Minister Ulf Kristersson. China's Vice Premier He Lifeng also arrived at the venue.
China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after reaching preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals.
Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo.
The Stockholm talks follow Trump's biggest trade deal yet with the European Union on Sunday for a 15% tariff on most EU goods exports to the United States, and a deal with Japan.
That agreement has brought a measure of relief to the EU but also frustration and anger, with France denouncing the deal as a 'submission' and Germany, Europe's largest economy, also warning of 'significant' damage.
STORY CONTINUES BELOW THIS AD
China can exercise a degree of leverage with its grip on the global market for rare earths and magnets, used in everything from military hardware to car windshield wiper motors, analysts say.
Unlike the EU, it also does not rely on the United States for security ties and can let trade talks play out for several more months, Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, told Reuters.
'China is well aware of its strong negotiating position, as could clearly be seen in the temporary escalation observed in April,' he said.
'But over Europe always hangs the Damocles sword of the US withdrawing its security guarantee, and that is why the EU did not escalate the situation like China did.'
Trump on Xi meeting
The Financial Times reported on Monday that the United States had paused curbs on tech exports to China to avoid disrupting trade talks with Beijing and support Trump's efforts to secure a meeting with Xi this year.
STORY CONTINUES BELOW THIS AD
Trump pushed back against suggestions he was seeking a meeting with Xi. 'This is not correct, I am not SEEKING anything! I may go to China, but it would only be at the invitation of President Xi, which has been extended. Otherwise, no interest!' he wrote on Truth Social on Tuesday.
Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips, and other goods halted by the United States.
Among broader economic issues, Washington complains that China's state-led, export-driven model is flooding world markets with cheap goods, while Beijing says US national security export controls on tech goods seek to stunt Chinese growth.
Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption – a decades-long goal for US policymakers.
STORY CONTINUES BELOW THIS AD
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
12 minutes ago
- Business Standard
Cognizant undecided on salary hike timing, wants to cover most in 2nd half
Cognizant said it is yet to decide on when to provide salary hikes to its employees as the business environment remains uncertain, following the paths of other IT services companies that have adopted a cautious stance or pushed it back indefinitely. 'Given the macro environment at play and the uncertainty around it, we have not yet taken a decision on salary increase. Our endeavour is to cover a vast majority of our employees during the second half of this year as and when we decide. This decision was made with a long-term view that considers both investment in our people and the future of our business,' Chief Financial Officer Jatin Dalal told Business Standard during an earnings conference call. Wipro, which implemented hikes from 1 September last year, also said earlier this month it would take a call after assessing the demand scenario. TCS, which decided to fire 12,000 employees, has deferred the hikes for this year indefinitely. Not only has the demand environment remained volatile, but the Indian IT industry is also facing headwinds from US President Donald Trump's retaliatory tariffs announced on Wednesday, which have further clouded the scenario. Cognizant added 7,500 people during the second quarter, and its headcount stood at 343,800 as of 30 June, as the company hired fresh engineering graduates from Indian colleges. 'We have taken freshers and will continue to take them for the rest of the year. Our target is about 15,000–20,000 and we are on track to do that,' said Kumar. He added that freshers can do more work with AI. Attrition, however, inched up just like other IT companies to 15.2 per cent from 13.6 per cent sequentially.
&w=3840&q=100)
Business Standard
12 minutes ago
- Business Standard
India's rice exports to stay resilient despite US tariff: Exporters' body
An association of rice exporters on Thursday said the 25 per cent tariff imposed by the US on Indian goods, including rice, will be a "temporary hurdle" and not a major disruption for the sector. The new tariff, effective from August 1, includes duties on Indian rice exports to the US, which stood around 2.34 lakh tonnes in FY'24, a small share of India's total 52.4 lakh tonnes of global basmati rice exports, the association said. "This tariff is a temporary hurdle, not a long-term roadblock. With strategic planning, diversification, and flexibility, Indian rice exporters can protect and even expand their presence in the US market," Indian Rice Exporters Federation (IREF) national president Prem Garg said. US President Donald Trump announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying military equipment and crude oil from Russia. He noted that the US is not the top basmati market for Indian exporters, with West Asia remaining the primary destination. Garg also emphasised India's relative competitiveness, stating that despite the new duties, Indian rice still attracts lower tariffs compared to key exporters from China, Vietnam, Pakistan, and Thailand. Echoing a similar sentiment, Ricevilla Group CEO Suraj Agarwal said, "The 25 per cent tariff may slow down rice exports in the short term, but India's competitive advantage and annual exports of 2.5-3 lakh tonnes to the US will likely sustain its market presence." With China facing a 34 per cent tariff, Vietnam at 46 per cent, and Thailand at 36 per cent, India's relatively lower tariff rate may provide a competitive edge in the long term, he said. The IREF, which represents over 7,500 stakeholders in the rice export value chain, said it would continue to engage with government agencies and trade bodies to mitigate the impact of the new tariff and push for market diversification.
&w=3840&q=100)
First Post
12 minutes ago
- First Post
Myanmar election in December: Junta lifts emergency 4 years after coup against Suu Kyi govt
Four years after Myanmar's military ousted Aung San Suu Kyi's civilian government in a coup, the junta has ended the emergency in the country and has formed a commission to hold elections in December. read more Myanmar's junta leader General Min Aung Hlaing, who ousted the elected government in a coup on February 1, 2021, presides over an army parade on Armed Forces Day in Naypyitaw, Myanmar, March 27, 2021. (Photo: Reuters) Four years after taking over the 'country in a coup, Myanmar's military junta has ended the emergency and formed a commission to hold elections in December. On February 1, 2021, Myanmar's military ousted the country's civilian leader, Aung San Suu Kyi, and Senior General Min Aung Hlaing assumed power. He declared a state of emergency in the country and detained several civilian leaders. The outrage against the coup led to a civil war that continues to this day. STORY CONTINUES BELOW THIS AD After Hlaing on Wednesday said that elections will be held in December, the state media reported on Thursday that the junta has set up an 11-member commission led by Hlaing to hold elections. While Hlaing has called elections as an offramp in the civil war that has not gone in the junta's favour, critics and opposition groups have slammed elections as sham and announced a boycott. Analysts have said that Hlaing will stay in power after elections either as the head of state or the head of the armed forces. By all accounts, the civil war has not gone in favour of Myanmar's junta. As per estimates, the junta controls just a fifth of the country and the rest of the country remains in the hands of either the National Unity Government (NUG) of the opposition groups or various ethnic armed groups active in the country. Myanmar's junta enacts tough election law Just before the announcement of elections and the setting up of the commission, the junta on Wednesday enacted a law that imposes punishments of up to the death penalty for anyone who opposes or disrupts elections later this year, according to the Associated Press. The new law says that anyone who speaks, organises, incites, protests, or distributes letters to disrupt any part of the electoral process shall be punished with three to ten years of imprisonment and a fine. As the junta enacted the law, Hlaing said that 'we have already passed the first chapter' and 'now we are starting the second chapter'. STORY CONTINUES BELOW THIS AD 'The upcoming election will be held this December, and efforts will be made to enable all eligible voters to cast their ballots,' the state media reported him as saying.
