US-China Trade Talks Nearing Deal, Says Treasury Secretary

Stockholm negotiations signal potential breakthrough after intense discussions.

Washington and Beijing appear to be on the cusp of a trade agreement, according to U.S. Treasury Secretary **Scott Bessent**. Following two days of high-stakes negotiations in Stockholm, **Bessent** expressed optimism about the progress made.

Optimism Amidst Negotiations

In a now-amended social media post, **Bessent** stated, This week’s negotiations in Stockholm have advanced our talks with China, and I believe that we have the makings of a deal that will benefit both of our great nations. He added, I am optimistic about the path forward.

This week’s negotiations in Stockholm have advanced our talks with China, and I believe that we have the makings of a deal that will benefit both of our great nations. I am optimistic about the path forward.

— U.S. Department of the Treasury (@USTreasury) August 1, 2025

The Treasury Department clarified that the initial phrasing accurately reflected **Bessent**’s recent public statements. Earlier, speaking to CNBC, **Bessent** confirmed that progress was evident but cautioned that the deal was not 100% done.

Pushing for a Resolution

During the two-day summit, U.S. negotiators reportedly pushed back quite a bit, according to **Bessent**. These discussions aimed to resolve outstanding issues following earlier agreements reached in May and June.

A critical deadline looms on August 12th for China to finalize a comprehensive tariff accord with the Trump administration. Missing this date could invite new punitive tariffs or trade restrictions. The ongoing efforts seek to de-escalate a prolonged tariff conflict and stabilize economic relations between the world’s two largest economies. Disputes over China’s export restrictions on rare earth minerals have been a significant point of contention.

Global Economic Impact

The cautious optimism from **Bessent** suggests a potential easing of trade tensions, even as President Trump maintains pressure through firm deadlines and strong tariff rhetoric. Globally, trade disputes can have substantial economic ripple effects. For instance, the World Trade Organization reported that global trade growth slowed to just 0.5% in 2023, partly attributed to rising protectionism.