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China and the U.S. released a joint statement on their economic and trade meeting in Stockholm on Tuesday, extending the pause on 24 percentage points of reciprocal tariffs for an additional period of 90 days, starting on August 12, 2025.

The U.S. should work with China to continue to enhance consensus, reduce misunderstandings, strengthen cooperation, further deepen dialogue and consultations, and strive for more win-win outcomes, Chinese Vice Premier He Lifeng said during the latest Beijing-Washington economic and trade talks in Sweden in July.

The talks in Geneva, London and Stockholm held in May, June and July, respectively, hold profound significance not only for these two economic giants but for the global economy at large. As the world watches, the stakes could hardly be higher: the future direction of the bilateral relationship and the stability of international trade hang in the balance.

Just as He stressed during the talks, a stable, healthy and sustainable China-U.S. economic and trade relationship serves not only the two countries' respective development goals but also contributes to global economic growth and stability.

Tariffs, imposed repeatedly in a tit-for-tat fashion between the U.S. and China, have inflicted considerable economic harm. These taxes on imports elevate costs for consumers and businesses alike, disrupt supply chains and reduce the efficiency of global markets.

Tariffs also bring longer-term uncertainty that stifles innovation and investment. While some Western politicians argue that tariffs generate revenues for governments, these gains are undermined by reduced economic output and slower growth, feeding into a cycle of uncertainty and friction.

Against this backdrop, the talks in Sweden offer a pivotal opportunity. Both sides come with a shared understanding of the costs imposed by tariff conflict and a desire – underscored by three rounds of talks in recent months – to extend the current tariff truce beyond its August 12 expiry.

The truce, which temporarily rolled back triple-digit tariffs to more manageable levels, has calmed tensions. But the talks aim not only to prolong this pause but to embed more stable, rules-based cooperation that tempers the cycle of escalation.

Such talks ripple far beyond bilateral trade, influencing global supply chains, market sentiment and international partnerships. The Sweden negotiations demonstrate that reducing tariffs and stabilizing trade relations is not a zero-sum game but a foundation for sustainable growth benefiting workers, consumers, and producers on both sides.

In the meantime, cooperation between China and the U.S. should go beyond rhetoric; it requires verifiable and enforceable actions to reduce tariffs and restore market confidence. By focusing on incremental progress rooted in mutual respect and shared interests, the two countries can build a stable platform for future engagement. This includes advancing agreements on tariff reductions, technology trade and safeguarding supply chains, especially related to critical minerals and emerging industries like artificial intelligence.

The world is not a spectator but an active participant affected by China-U.S. trade dynamics. Markets, manufacturers and investors across continents take signals from these negotiations. Extending and deepening the tariff truce would reduce uncertainty, stimulate trade and investment flows and mitigate risks of further protectionism. It would also reaffirm both nations' leadership roles in upholding a stable international economic order rather than sliding toward fragmentation and decoupling.

Incremental yet meaningful progress in reducing tariffs and resolving disputes would offer a new model of engagement based on cooperation without compromise of core principles. While challenges remain, including technology restrictions and geopolitical tensions, grounded dialogue anchored by concrete actions on tariffs is indispensable.

The lesson is clear: tariffs are not mere tools of negotiation but economic impediments that exact real costs on growth, jobs and international stability. Reducing them, therefore, is not just desirable but essential. China's call for pragmatic, equal-footed cooperation remains a guiding light in this complex era.

The world expects both sides to rise to the moment, not with empty promises but with meaningful steps that transform trade friction into a foundation for shared prosperity and enduring peace.

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