The US-China trade talks changed little. For Beijing, that counts as a win

Trade relations between China and the United States remain mired in uncertainty after two days of tense negotiations in Sweden earlier this week. But Beijing may actually have emerged in a stronger position as Washington continues to raise tariffs on other global economies, analysts said.

A third round of US-China trade talks in Stockholm ended on Tuesday with China announcing that both sides had agreed to extend their “tariff truce” by another 90 days, while the US side insisted the deal was still pending US President Donald Trump’s final approval.

That means, if nothing unexpected happens, the US will continue to impose 30 per cent additional tariffs on China after August 12, when the original truce is due to expire.

The rate includes 20 per cent of duties Trump announced in the first quarter of the year, which were related to China’s role in the fentanyl trade, and another 10 per cent levy imposed in April.

But in relative terms, China’s tariff rate is starting to look less damaging, as the US moves to impose higher rates on a slew of major trading partners before an August 1 deadline set by Trump.