US Treasury Secretary Scott Bessent said on Tuesday that he is set to meet his Chinese counterpart in Stockholm next week, with discussions expected to include the likely extension of an August 12 deadline for higher tariffs.
The talks, scheduled for Monday and Tuesday, mark the latest round of high-level engagement between Washington and Beijing as trade relations stabilise after months of volatility.
Speaking on Fox Business, Bessent described the current US-China trade environment as “a very good place” and indicated that both sides have moved into a “constructive” phase.
“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,” Bessent said.
Beyond tariffs: focus shifts to structural economic issues
While previous negotiations largely focused on restoring access to critical goods—such as Chinese rare earth exports and US semiconductor software and materials—Bessent said next week’s meetings will broaden the scope.
Among the topics expected to be discussed is Beijing’s industrial overcapacity and its economic dependence on exports.
“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 said, referring to growing concerns in Washington over China’s production excess in sectors such as electric vehicles, solar panels, and steel.
The talks also come amid rising geopolitical tensions.
Bessent said he plans to raise concerns about China’s continued purchases of sanctioned Russian and Iranian oil, and Beijing’s alleged support for Moscow amid the war in Ukraine.
US may push for secondary sanctions on Russian oil
Bessent indicated that Washington is preparing to escalate pressure on countries that continue to import Russian oil.
He said there is bipartisan support in the US Senate for legislation that would impose 100% tariffs on imports from countries violating energy sanctions, explicitly naming China and India.
He added that coordination with European partners would be key.
“The Europeans have talked a big game about sanctioning Russia, and 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,” Bessent said.
New trade deals on the horizon
The Treasury Secretary also suggested the US is close to announcing a series of new trade agreements.
While he did not specify countries, he noted that Japan could be among them despite recent political uncertainty following an election setback for its ruling party.
“I wouldn’t be surprised if we aren’t able to iron out something with Japan pretty quickly,” Bessent said. He acknowledged that negotiations remain challenging, but suggested progress was within reach.
Looking ahead, Bessent said he expects tariffs on many countries to revert “back towards April 2 levels” from the current 10%, even as negotiations continue.
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