The tariff crisis Trump's tariff policy

China has the advantage ahead of "fragile" Stockholm meeting

When China and the US meet tomorrow in Stockholm for a new round of trade talks, Beijing's strong grip on rare minerals has given it the upper hand, writes CNN. Since the last negotiations in London, the US has rolled back some of its China tariffs, while Chinese macro shows that the economy has performed better than expected. According to the channel, this indicates that China has managed to strengthen its exports elsewhere as they increasingly turn away from the US.

Now CNN predicts that Chinese Vice Premier He Lifeng will want to negotiate even more US concessions.

US Treasury Secretary Scott Bessent has previously said that the meeting is about negotiating an extension of the latest tariff break that expires on August 12. Josh Lipsky at the Atlantic Council think tank also believes that this is the most likely outcome and that the parties will meet again in the fall.

– But we have learned that the situation can turn around in a blink of an eye [...] and this is a fragile truce.

Sources: China and US extend tariff break

The US and China will extend their tariff break by 90 days at the trade meeting in Stockholm to be held tomorrow, sources tell the South China Morning Post. Furthermore, the sources say that no major breakthroughs are expected on core issues such as industrial production and fentanyl tariffs.

One of the main items on the agenda is an extension of the 90-day tariff break. It expires on August 12.

Economists on the agreement: "Hard to see it as a victory"

That the EU and the US have reached an agreement in principle on a trade agreement is welcomed by economists. It removes a wet blanket that has been covering EU growth, writes SEB's senior economist Robert Bergqvist on X.

- But at the same time I find it difficult to see it as a victory. There are still high tariffs, he tells TT.

Harald Magnus Andreassen, chief economist at Norwegian Sparebank 1 Markets, is on the same track. It is better than a full-scale trade war.

- Although 15 percent is more than sand in the machine, the highest tariff level since the 1930s.

Holger Schmieding, chief economist at German bank Berenberg, writes as follows:

"Trump can claim that the asymmetric agreement is a 'win' for him. But the result is of course still bad in relation to the situation that prevailed before Trump started his trade wars," he writes.

In the agreement, the EU agrees to 15 percent tariffs on most exports, writes Bloomberg. In addition, the EU commits to purchasing energy worth 750 billion dollars and investing 600 billion in the United States. 

Analysis: Advantage US – the devil is in the details

A weak Europe has agreed on a trade agreement with the US with basic tariffs of 15 percent, according to the analyses.

"One thing is certain: It could have been significantly worse," writes DN's Felicia Åkerman. She believes that it is an unbalanced agreement in favor of the US, even though the details are still unclear.

Reuters' Mark John writes that Europe lacked influence and was therefore forced to sign an agreement that is distorted. "The timeframe for this is still undefined, as are other details of the agreement at the moment," he writes.

The EU has promised investments in the US of thousands of billions of kronor, but it is unclear when and in which sectors. "The devil is in the details," writes BBC's US correspondent Arunoday Mukharji, noting that the effects will only become apparent later. 

Von der Leyen: "15 percent was the best we could get"

EU Commission President Ursula von der Leyen defends the tariff agreement with the US.

- 15 percent should not be underestimated, but it is the best we could get, she tells reporters, according to AFP.

Without an agreement, the EU risked 30 percent tariffs. At the same time, a zero percent tariff was introduced for certain strategic products, including aircraft, aircraft parts and pharmaceuticals, the news agency writes.

In addition, the EU is committing to buying energy worth $750 billion and investing $600 billion in the US.

- We will replace Russian gas and oil through significant purchases of American liquefied natural gas, oil and nuclear fuel, Ursula von der Leyen says at a press conference, according to TT.