U.S. and China to Hold High-Stakes Trade Talks in Madrid Amid Tariff Pressures & TikTok Deadline

World 09:36 AM - 2025-09-14

U.S. and Chinese flags are seen on the day of a bilateral US-China meeting, in Geneva, Switzerland.

Senior U.S. and Chinese officials convened in Madrid on Sunday for a new round of trade negotiations, with discussions expected to focus on entrenched tariff disputes, the future of the Chinese-owned short video platform TikTok, and Washington’s calls for allies to impose punitive tariffs on Beijing in response to its continued purchases of Russian oil.

The talks bring together U.S. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, joined by China’s top trade negotiator Li Chenggang. It marks the fourth such meeting in as many months, following earlier sessions in Geneva, London and Stockholm, aimed at stabilising an increasingly fragile trade relationship under U.S. President Donald Trump’s tariffs.

In July, the two sides reached a provisional agreement in Stockholm to extend a trade truce for 90 days, sharply reducing retaliatory tariffs and restoring the flow of rare-earth minerals to the United States. Nevertheless, President Trump last week confirmed the continuation of US tariff rates of around 55% on Chinese goods until 10 November 2025, underlining the limited scope of recent compromises.

TikTok Divestiture Dispute

A central issue in Madrid is the looming 17 September deadline for TikTok’s parent company, ByteDance, to divest its U.S. operations or face a shutdown. Analysts expect the deadline to be extended for a fourth time, with insiders noting that the administration is unlikely to finalise a deal before the deadline. The public inclusion of TikTok on the agenda is seen as providing the White House with political cover for such an extension, though it risks frustrating both Republicans and Democrats who had mandated the sale to mitigate national security concerns.

Pressure Over Russian Oil

Washington is also pressing Beijing to limit its purchases of Russian crude, which U.S. officials argue undermines Western sanctions and finances Moscow’s war effort in Ukraine. Bessent, ahead of the Madrid talks, urged G7 allies to impose “meaningful tariffs” on Chinese and Indian imports in order to constrain Russian revenues.

“Only with a unified effort that cuts off the revenues funding Putin’s war machine at the source will we be able to apply sufficient economic pressure to end the senseless killing,” Bessent and Greer said in a joint statement.

The G7 finance ministers, meeting on Friday, acknowledged the U.S. proposal and pledged to accelerate discussions on using frozen Russian assets to bolster Ukraine’s defence.

Spain’s Diplomatic Stage

The Spanish government has framed the talks as a demonstration of Madrid’s growing role as a host for high-level international negotiations. Prime Minister Pedro Sánchez and Foreign Minister José Manuel Albares welcomed the delegations at the Palacio de Santa Cruz, underscoring Spain’s ambition to position itself as a mediator in both trade disputes and broader geopolitical conflicts.

A Spanish government source said hosting the US–China dialogue strengthens Spain’s standing as a credible venue for sensitive diplomacy, while also helping to repair strained bilateral ties with Washington following disagreements over Israel and NATO defence spending.

Despite the symbolism, trade experts caution that a substantive breakthrough in Madrid remains unlikely, with the outcome most probably confined to deadline extensions and reaffirmations of existing truce arrangements.

Source: Reuters



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