Trade Talks Between the USA and China Conclude Without Agreement

• Negotiations between the USA and China ended without an agreement
• The USA reached an agreement with the EU on tariffs for imports
• China plans to support companies that suffered from the tariffs

Negotiations between the USA and China in Stockholm concluded on July 29 without an agreement. This round of negotiations was part of ongoing commercial dialogue between the two largest economies in the world, which began with the increase of tariffs to 145%. After the agreement in Geneva in June, tariffs on Chinese goods were reduced by 30%.

During the negotiations in Stockholm, the possibility of extending the deadline for reaching an agreement was discussed, but no concrete decisions were made. The US Treasury Secretary Scott Bessent stated that President Trump will decide whether to extend the deadline for reaching an agreement until August 12.

This situation arose from a recent agreement between the USA and the European Union, within which a baseline tariff rate of 15% on the majority of European imports was established. The agreement also provides for the purchase of strategic goods worth $750 billion from the USA.

Critics argue that the EU is unable to leverage its status as the largest single market to achieve better conditions. This is related to the necessity of obtaining security guarantees from the USA in the context of the war in Ukraine.

At the same time, China has pledged to support its companies that suffered from the increase in tariffs, including through financial assistance and stimulating external trade.

Negotiations between the USA and China, regardless of the outcome, may continue at the APEC summit in South Korea, which will be held from July 30 to November 1.

Tags: USA/China/Economy