In a significant move to ease trade tensions, China and the United States announced a 90-day extension of tariff suspensions following high-level economic talks in Stockholm. The agreement builds on previous commitments made during meetings in Geneva and London earlier this year, signaling cautious progress in bilateral trade relations.
Under the new terms, the U.S. will suspend 24 percentage points of additional tariffs on Chinese goods – including those from Hong Kong and Macao Special Administrative Regions – while maintaining a 10% duty. China reciprocated with matching tariff suspensions on American products and pledged to address non-tariff countermeasures outlined in their May 2025 Geneva agreement.
The Stockholm meeting, led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent alongside Trade Representative Jamieson Greer, reinforces the dialogue mechanism established through previous negotiations. While neither side disclosed details about long-term structural reforms, the temporary tariff relief offers breathing room for businesses and investors navigating the $650 billion bilateral trade relationship.
Analysts suggest the extended truce could stabilize supply chains across Asia-Pacific markets, particularly benefiting technology and manufacturing sectors. However, observers note that fundamental disagreements on issues ranging from market access to technology transfers remain unresolved.
