U.S. Treasury Secretary Scott Bessent announced on Tuesday that he will meet with his Chinese counterpart next week in Stockholm to discuss trade relations and a likely extension of the looming August 12 deadline for increased tariffs.
In an interview with Fox Business Network’s Mornings With Maria, Bessent said that trade relations between the U.S. and China have entered a very good place, signalling optimism ahead of the Monday-Tuesday bilateral talks.
“I think we’ve actually moved to a new level with China—very constructive,” Bessent said. “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.”
While previous negotiations focused primarily on critical sectors such as Chinese rare earth exports and U.S. semiconductor technologies, Bessent noted that this round of talks would address broader economic concerns. Key topics will include China’s dependence on exports and manufacturing, as well as encouraging the development of a more consumption-driven economy.
“Hopefully we can see the Chinese pull back on some of this glut of manufacturing and focus more on building a consumer economy,” he said.
Bessent also signalled a tougher stance on China’s geopolitical alignments. He plans to confront Beijing over its continued purchases of sanctioned Russian and Iranian oil, and its alleged support for Russia’s war efforts in Ukraine.
The Treasury Secretary revealed that bipartisan momentum is building in the U.S. Senate for legislation that would impose 100% tariffs on imports from nations continuing to purchase Russian oil—specifically citing China and India.
“I’ll also be speaking with my European counterparts,” Bessent said. “Europe has talked a big game on sanctioning Russia, but we’ll be urging them to consider imposing strong secondary tariffs on Russian oil as well.”
In addition to China talks, Bessent hinted at a series of imminent trade agreements between the U.S. and other countries, including Japan, despite that country’s recent political turbulence.
“I wouldn’t be surprised if we’re able to iron out something with Japan pretty quickly,” he said.
However, he added that for most trade partners, current tariffs—now at 10%—may revert to their April 2 levels, depending on the outcomes of ongoing negotiations.
The Stockholm meeting marks a critical moment in the evolving global trade landscape, as Washington aims to reinforce alliances, curb adversarial influence, and recalibrate supply chains amid rising geopolitical tensions.
Reuters/s.s