Bessent on China Trade Talks: ‘Nothing Is Agreed Until We Speak With President Trump’

Treasury Secretary Scott Bessent (L) and U.S. Trade Representative Jamieson Greer were in Stockholm to hold trade talks with a delegation from China. (MAGNUS LEJHALL/TT News Agency/AFP via Getty Images)

Negotiations between the U.S. and China on a possible trade deal in Sweden this week were “very constructive,” Treasury Secretary Scott Bessent told reporters on Tuesday.

Bessent confirmed that a 90-day extension on the current Aug. 12 deadline to reach a deal is possible. Tariffs on Chinese imports are currently set at 30%, but President Donald Trump has threatened to raise that amount to as much as 145% if a deal isn’t reached.

Trump must sign off on any extension of the lower rates as negotiations continue, Bessent added. “Nothing is agreed until we speak with President Trump.”

When asked what the biggest concession China has made, U.S. Trade Representative Jamieson Greer said, “They blocked all of their rare earth magnets and now we’re getting them.”

India May Face 25% Tariff Rate

A deal with India isn’t yet finalized, Trump said aboard Air Force One on his way back from Scotland, where he visited his golf courses and met with European leaders.

However, he indicated that the new tariff rate on imports from India could be 25% when asked about a media report on it. That would be one percentage point lower than the 26% rate Trump initially threatened on April 2 before putting it on pause.

“We’re going to see. India has been a good friend, but India has charged basically more tariffs than almost any other country. Now I’m in charge and you just can’t do that,” he said.

Lutnick Says China Deadline Will Probably Be Extended

The deadline for China will probably be extended, Commerce Secretary Howard Lutnick said Monday in an interview with Fox News. He added that President Trump will be the one to decide.

There’s also talk of an in-person meeting between Trump and Chinese leader Xi Jinping. In a Truth Social post late Monday, Trump said he isn’t seeking a summit with Xi, but that he may travel to China at Xi’s invitation. If he does, that could be an opportunity to announce more details of a trade deal between the world’s two biggest economies.

China’s final tariff rate will be higher than the 10% baseline, but lower than what was proposed initially on April 2, if the pattern established with the Japan and European Union deals continues. Countries are told that the rates will be higher if they retaliate with tariffs on U.S. goods, and the agreements also involve promises of investments in the U.S.

For any countries that have yet to agree to a deal, new tariff rates are due to come into effect on Friday, Aug. 1, though such deadlines have proved to be flexible in the past.

Europe’s Philips Sees a Smaller Tariff Hit

American depositary receipts of Philips jumped 9% in Tuesday trading after the Dutch electronics firm lowered its estimate of how much tariffs would hurt earnings. The company has been ramping up its local production and supply chains in China, the U.S., and Europe to mitigate the impact of taxes on trade.

Overall, though, the impact on European companies from the imposition of 15% tariffs on goods to the U.S. is seen as negative. The Stoxx Europe 600 fell on Monday after the deal was announced over the weekend. The index was up 0.4% Tuesday.

Write to Anita Hamilton at anita.hamilton@barrons.com and Brian Swint at brian.swint@barrons.com