U.S. Treasury Secretary Scott Bessent led the American delegation, which arrived at the Swedish prime minister’s office, Rosenbad, in central Stockholm. Chinese Vice Premier He Lifeng was also present, according to video footage from the scene.

The talks come ahead of an August 12 deadline to finalize a lasting tariff agreement. Over the past few months, both sides have reached temporary deals that paused escalating trade restrictions and eased tensions over the export of rare earth minerals.

President Donald Trump referenced the negotiations during a joint press conference with British Prime Minister Keir Starmer in Scotland. “I’d love to see China open up their country. So we’re dealing with China right now as we speak,” Trump said.

Without a new agreement, U.S. tariffs could return to triple-digit levels, triggering major disruptions in global supply chains and effectively cutting off bilateral trade.

U.S. Trade Representative Jamieson Greer, also attending the talks, cautioned against expecting immediate breakthroughs. “I don’t anticipate a major announcement today,” he said in an interview. “But we’re reviewing how well current commitments are being upheld, especially around the flow of critical minerals, and preparing for more balanced and expanded trade in the future.”

The Stockholm meeting follows a significant U.S.-EU trade agreement reached on Sunday, which imposes a 15% tariff on most European exports to the U.S.

Analysts say another 90-day extension of the existing trade truce—first established in mid-May—is likely. Such an extension would help lay the groundwork for a potential meeting between President Trump and Chinese President Xi Jinping later this fall, possibly in October or November.

Bessent stated that trade relations with China are currently in a positive state, and the meetings are scheduled for Monday and Tuesday in Stockholm.

He expressed optimism about the progress made, saying that discussions have reached a new, constructive phase, enabling substantial work now that trade tensions have stabilised at a manageable level.

Swedish Prime Minister Ulf Kristersson confirmed on social media that Sweden will host the talks early next week, highlighting the positive step of both nations seeking mutual understanding.

China’s embassy in Washington has yet to confirm details regarding the planned discussions or Chinese representatives.

Since mid-May, Bessent has held two meetings with Chinese Vice Premier He Lifeng in Geneva and London to develop and refine a temporary trade truce, which reduced the risk of escalating tariffs that could have severely disrupted trade between the two largest economies.

Previous talks also involved U.S. Trade Representative Jamieson Greer, Commerce Secretary Howard Lutnick, China’s Commerce Minister Wang Wentao, and chief trade negotiator Li Chenggang.

Among agreements reached so far, China has lifted its export ban on rare earth metals and magnets to the U.S., while the U.S. has resumed shipments of semiconductor design software, production materials, commercial aircraft engines, and other products to China.

The two sides initially set a 90-day timeline to address more complex issues, including U.S. concerns about China’s state-driven and subsidised export model, which has led to excess manufacturing capacity and an influx of inexpensive goods into global markets. China rejects claims of subsidies, attributing its export success to innovation.

If no deal or extension is reached, tariffs could return to previous high levels of 145% for the U.S. and 125% for China.

Bessent said the Stockholm meetings will likely focus on extending the deadline and tackling other issues, such as encouraging China to reduce its heavy dependence on manufacturing and exports.

He hopes China will scale back on overproduction and shift toward developing a consumer-based economy.

Additionally, Bessent plans to address concerns over China’s ongoing purchases of Russian and Iranian oil, despite sanctions, and its support for Russia’s military actions in Ukraine.

He noted bipartisan backing in the U.S. Senate for legislation proposing 100% tariffs on goods from countries, specifically China and India, that continue buying Russian oil.

Bessent emphasised the importance of cooperation with European partners, urging them to enforce strong secondary tariffs on Russian oil imports.

He also mentioned upcoming trade agreements with other countries, including Japan, despite recent political challenges there.

While tariffs are expected to revert to levels seen in early April from the current 10%, negotiations on trade deals will continue.

The proposal, presented by U.S. Treasury Secretary Scott Bessent during a visit to Kyiv on Wednesday, follows an earlier outline by Zelensky that would have opened Ukraine’s extensive natural resources to U.S. investment. However, President Zelensky expressed concerns over the lack of strong provisions to ensure Ukraine’s sovereignty and security in the deal.

A Controversial Proposal

According to three sources familiar with the discussions, the U.S. had suggested a 50/50 split of Ukraine’s critical minerals, including those essential for modern technologies, energy production, and military equipment. These minerals are vital not only for Ukraine’s economic recovery but also for its defense as the country continues to contend with the ongoing war with Russia.

Zelensky’s rejection of the deal underscores the delicate balancing act Kyiv faces in managing foreign investments while safeguarding its national interests. The Ukrainian president has previously emphasized the importance of protecting Ukraine’s sovereignty, especially in light of Russia’s invasion and ongoing aggression.

A Risk to National Security?

Zelensky’s refusal to sign the deal signals broader concerns about the long-term implications of foreign control over Ukraine’s critical resources. While the prospect of significant U.S. investment in Ukraine’s mineral wealth could help revitalize the country’s war-torn economy, there are fears that such an agreement could potentially undermine Ukraine’s control over its strategic resources.

Sources close to the Ukrainian government revealed that Zelensky is looking for a more robust security framework in any future agreements with foreign powers, particularly the U.S. The president has been vocal about ensuring that any deal benefiting Ukraine’s natural resources also prioritizes the country’s security and long-term stability.

U.S.-Ukraine Relations Under Scrutiny

This move comes at a critical moment in U.S.-Ukraine relations, as both countries navigate the complexities of military support and economic recovery efforts amidst Russia’s continued aggression. The U.S. has been one of Ukraine’s staunchest allies in its fight against Russia, but Zelensky’s rejection of the minerals deal highlights growing tensions over the terms of foreign involvement in the country’s recovery.

While the proposed deal was meant to attract much-needed investment into Ukraine’s mineral sector, Zelensky’s decision raises questions about the broader implications for Ukraine’s sovereignty and its approach to foreign partnerships.

Looking Ahead: Ukraine’s Resource Strategy

As Ukraine continues to recover from the devastating war, securing its mineral resources will be crucial for both economic growth and military defense. Zelensky’s rejection of the proposed U.S. deal signals that Ukraine is carefully considering the terms of its foreign partnerships, weighing the potential economic benefits against the need to protect its national interests.

With ongoing talks between Ukraine and its international partners, the next steps will likely involve negotiating more secure, mutually beneficial agreements that ensure the protection of Ukraine’s sovereignty while fostering growth and recovery.