Trade tensions in focus as U.S. and China talks enter second day in Stockholm

U.S. 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 breakthroughs but the two sides could agree to another 90-day extension of a tariff truce struck in mid-May, according to Reuters news agency.

The delegations met for more than five hours on Monday at Rosenbad, the Swedish prime minister’s office in central Stockholm.

U.S. 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.

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 Chinese President Xi Jinping this year.

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.