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U.S. President Donald Trump expressed cautious optimism on Tuesday after a high-level meeting between U.S. Treasury Secretary Scott Bessent and Chinese officials in Sweden. Speaking aboard Air Force One on his return to Washington from Scotland, Trump said Bessent felt “very good” about the talks, describing them as an improvement over earlier discussions.
The meeting, held in Stockholm over two days, aimed to ease escalating trade tensions between the world’s two largest economies. Both sides agreed to explore an extension of the 90-day tariff truce currently set to expire on August 12, though no major breakthroughs were announced.
The truce, initially intended to halt additional tariffs during negotiations, remains a critical buffer in the ongoing U.S.-China trade war. Without an extension, tariffs could rise to triple-digit levels, potentially impacting global markets and supply chains. Trump emphasized that the decision to extend the truce ultimately rests with him.
Addressing trade relations with India, Trump noted that no agreement had been finalized, highlighting India’s comparatively high tariffs. The United States continues to seek fairer trade terms with major partners as part of its broader strategy to rebalance global trade.
The outcome of the Stockholm talks could influence upcoming trade policy decisions, with both Washington and Beijing under pressure to prevent further economic fallout. Investors and global markets are closely watching whether the truce will be renewed, as any shift could significantly impact trade flows and economic growth worldwide.
The discussions mark the latest attempt by the U.S. and China to resolve disputes over tariffs and market access, underscoring ongoing challenges in forging a comprehensive trade deal between the two economic powers.
