U.S. and China Resume Trade Talks in Madrid With TikTok and Tariffs in Focus

Picture Credit: Bloomberg

Senior U.S. and Chinese officials met in Madrid on Sunday for another round of talks aimed at stabilizing strained trade ties, with issues ranging from tariffs to the fate of TikTok’s U.S. operations on the table.

The delegations, led by U.S. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, Chinese Vice Premier He Lifeng, and chief negotiator Li Chenggang, met for six hours at Madrid’s Palacio de Santa Cruz. It was their fourth meeting following earlier rounds in Geneva, London, and Stockholm.

While no breakthrough was expected, trade experts believe the most likely outcome is another extension of the looming September 17 deadline for TikTok parent ByteDance to divest its U.S. business or face a ban. This would mark the fourth such extension under the Trump administration. Observers say the talks are laying groundwork for a possible face-to-face meeting later this year between President Donald Trump and Chinese President Xi Jinping, perhaps at the APEC summit in Seoul.

Tariffs remain another flashpoint. Trump has extended steep U.S. duties on Chinese goods, with total tariffs at about 55%, while Beijing continues to press for relief from export controls on semiconductors and other high-tech products. The U.S., meanwhile, is pushing its G7 allies to impose penalties on Chinese and Indian imports in response to their purchases of Russian oil, part of Washington’s wider effort to squeeze Moscow’s revenues amid the war in Ukraine.

Despite the tensions, both sides are signaling a willingness to keep talking. Analysts say any substantial concessions on tariffs or export controls are unlikely before a potential Trump-Xi meeting, but the Madrid session provided an opportunity for each side to test red lines and keep dialogue alive. Talks are set to continue on Monday morning, with both delegations expected to brief the press later in the day.