Donald Trump surprised many when he hinted that a China trade deal is already in place. He didn’t share details but joked, We’ve kind of reached one already, but let’s see how it unfolds before meeting EU Commission President Ursula von der Leyen in Scotland.
This week, top U.S. and Chinese negotiators head to Stockholm with a mid August deadline to extend their tariff truce. China’s Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent will tackle everything from keeping tariffs paused to U.S. worries about fentanyl trafficking and sanctioned oil purchases.
Beneath the headlines is a battle over key technologies. China’s rare?earth magnets are crucial for electric vehicles, wind turbines and military gear. The U.S. wants to diversify supply chains and limit dependence while holding tight on cutting?edge AI semiconductors.
These talks follow Trump’s recent deal with the EU, which saw Europe agree to a 15% tariff on exports to the U.S. in exchange for $600 B in U.S. investments in energy and defense. Still, new U.S. tariffs on Chinese goods from chips to pharmaceuticals could kick in if negotiators can’t lock down a firm agreement.
This article first appeared on GuruFocus.
