US and China Discuss Tariff Truce Extension Amid Trade War Concerns

Constructive Trade Talks in Stockholm

• 🤝 The US and Chinese officials held "constructive" talks in Stockholm aimed at defusing the escalating trade war.
• 🗓️ Both sides agreed to work toward extending their 90-day tariff truce.
• 🗣️ The overall tone of the meetings was described as very constructive.

US Concerns Raised with China

• 🏭 The US expressed concern about Chinese overcapacity globally and its potential impact in the coming years.
• 🛢️ Concerns were also raised regarding China's purchase of approximately 90% of sanctioned Iranian oil.
• 🇷🇺 The US expressed regret over alleged sales of $15 billion of dual-use technologies to Russia.

US Stance on Decoupling and Derisking

• 🚫 The US reiterated its stance that it does not want to decouple from China.
• 🛡️ However, the US emphasized the need to "derisk" certain strategic industries, including rare earth minerals, semiconductors, and medicines.
• ⚖️ Discussions also covered potential joint actions to achieve balance within the bilateral relationship.

President's Decision on Tariff Truce

• 📞 The US team planned to brief the President upon returning to Washington DC regarding the potential extension of the tariff truce.
• ✅ The President will make the final call on whether to approve the extension.
• 📊 A senior official indicated that the decision had not been made yet by the US side.