U.S. Treasury Secretary Scott Bessent announced on Tuesday that he will meet with his Chinese counterpart next week in Stockholm to discuss the potential extension of a looming tariff deadline set for August 12.
Bessent said trade relations between the U.S. and China have reached a constructive stage and that both sides are now in a position to finalize new agreements.
Constructive Progress in U.S.-China Trade Dialogue
Speaking to Fox Business, Bessent shared optimism about the current state of trade relations.
“I think we’ve actually moved to a new level with China, where it’s very constructive and… we’re going to be able to get a lot of things done now that trade has kind of settled in at a good level,” he said.
The talks in Stockholm are scheduled for Monday and Tuesday next week.
Beyond Tariffs: Addressing Structural Issues
While the prior tariff truce was focused on restarting supply flows — particularly rare earth metals from China and semiconductor materials from the U.S. — Bessent said the scope of this meeting will be broader.
He expressed hope that China would reduce its over-reliance on manufacturing and pivot toward fostering a consumer-driven economy.
“Hopefully we can see the Chinese pull back on some of this glut of manufacturing that they’re doing and concentrate on building a consumer economy,” Bessent stated.
Focus on Russian Oil Purchases and Geopolitical Tensions
Bessent also plans to address China’s ongoing purchases of sanctioned Russian and Iranian oil — a growing concern among U.S. lawmakers.
He emphasized bipartisan support in the U.S. Senate for new legislation imposing tariffs of up to 100% on goods from countries that continue importing Russian oil, namely China and India.
“I’m going to be in touch with my European counterparts,” he added.
“The Europeans that have talked a big game about sanctioning Russia… it’ll be very important for the Europeans to also be willing to put on these high levels of secondary tariffs for sanctioned Russian oil.”
Potential New Trade Deals in the Pipeline
Looking ahead, Bessent hinted at a wave of new trade agreements, with Japan potentially among the early partners despite recent political challenges there.
“I wouldn’t be surprised if we aren’t able to iron out something with Japan pretty quickly,” he said.
However, Bessent clarified that current 10% tariffs might revert to April levels of around 2% for many nations, even as negotiations continue.
His comments suggest a shift toward nuanced trade diplomacy, with room for selective easing alongside new enforcement measures.