Trade War: China and the United States Lower Their Tones

After slamming China with tariffs in the spring, US President Donald Trump wants to maintain a relative understanding with the country, hoping to meet with his Chinese counterpart, Xi Jinping, in the fall. This arrangement explains the new spirit of compromise that reigns in the White House's handling of contentious issues with Beijing—and which raises eyebrows among those who advocate for greater containment of China's catch-up.

Negotiators from the two largest economies met on Monday, July 28, in Stockholm, Sweden, and were expected to continue talks on Tuesday. But it is likely that they will agree on an extension of the truce they reached at a high-tension summit in Geneva on May 10 and 11, after six weeks of escalating tariff wars. "With China, the agreement expires on August 12 (...) and we will work toward a likely extension," US Treasury Secretary Scott Bessent said on CNBC on July 22. "Trade is going well with China. We will be talking about many other things our countries can do together."

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