By Krieger Worldwide
High-level trade negotiations between the U.S. and China took place this week in Stockholm. While these talks are critical, senior U.S. officials were managing expectations:
- United States Trade Representative (USTR) Jamieson Greer has indicated that a significant breakthrough is unlikely at this stage.
- Treasury Secretary Scott Bessent noted that the primary objective of these discussions is to secure an extension of the current tariff deadline, which is set to expire on Aug. 12.
If no agreement is reached, U.S. tariffs on Chinese imports are expected to escalate.
Currently, Chinese goods are subject to a layered tariff structure, which includes:
- A 10% across-the-board International Emergency Economic Powers Act (IEEPA) reciprocal tariff
- An additional 20% IEEPA fentanyl tariff (on applicable goods)
- Section 301 tariffs (related to unfair trade practices)
- Section 232 tariffs (mostly on steel/aluminum)
- Most favored nation (MFN) duties under the WTO schedule.
Combined, these IEEPA tariffs have pushed effective duty rates on certain Chinese imports as high as 145%, not including MFN, Section 301, or Section 232 tariffs.
