US, China Lock Horns Again As Madrid Talks Seek Fragile Trade Truce
CHINA and the United States reopened high-stakes trade talks in Madrid on Monday, as the world’s two largest economies struggle to resolve disputes over tariffs and technology that have roiled global markets.
The negotiations resumed at Spain’s foreign ministry, a day after US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng launched the latest round of discussions. Meetings are scheduled to run through Wednesday, with both sides under pressure to defuse tensions before a fragile tariff truce expires in November.
At the heart of the agenda are two flashpoints: Washington’s threat of steep new tariffs on Chinese imports and the looming deadline for TikTok to be sold to a non-Chinese owner or face a ban in the United States on 17 September.
Trade frictions escalated dramatically earlier this year, with tit-for-tat tariffs soaring into triple digits and supply chains snarled worldwide. A temporary compromise later reduced tariffs to 30 percent on Chinese goods entering the US and 10 percent on American products heading into China, but the reprieve is set to lapse in just weeks.
Beijing last week called for disputes to be resolved “on the basis of mutual respect and equal consultations,” while over the weekend it retaliated by launching investigations into the US semiconductor sector—underscoring that mistrust still runs deep.
The Madrid talks are being closely watched as a possible precursor to a Trump–Xi summit later this year, which could determine whether the two powers can stabilize their economic relationship or slide back into confrontation. For now, negotiators face the delicate task of keeping the peace while wrestling over access to technology, rare earth exports, and the balance of trade between the rival giants.
