U.S. and China began fresh talks in Madrid on Sunday as the two sides attempted to steady their strained trade relationship, tackle the looming divestiture deadline for TikTok, and address Washington’s calls for allied nations to impose tariffs on China over its continued purchases of Russian oil.
U.S. Trade Representative Jamieson Greer arrived at the Palacio de Santa Cruz, Spain’s foreign ministry headquarters, shortly before Chinese Vice Premier He Lifeng and chief trade negotiator Li Chenggang. The discussions mark the fourth round of high-level talks in Europe in as many months, following earlier meetings in Geneva, London, and Stockholm, as both sides try to prevent relations from deteriorating further under President Donald Trump’s tariff-heavy agenda.
In July, negotiators in Stockholm agreed to extend a fragile 90-day truce that eased punitive tariffs and reopened Chinese rare-earth exports to the United States. Trump has since approved an extension of U.S. tariff rates, averaging around 55% on Chinese goods, until November 10.
Wider Economic Frictions
Wendy Cutler, a former U.S. trade negotiator, said significant concessions on tariffs or export controls were unlikely in Madrid, with both sides holding firm on core demands. “Frankly, I don’t think China is in any rush to do an agreement where they don’t get substantial concessions on export controls and lower tariffs,” she said, noting that U.S. structural complaints about China’s export-driven model could take years to resolve.
Other potential bargaining chips, she suggested, could include easing restrictions on Chinese purchases of U.S. soybeans and reducing fentanyl-related tariffs, though these would likely be saved for a Trump–Xi meeting.
Russian Oil in Focus
The talks also included U.S. pressure on China to stem illicit technology transfers to Russia and reduce its purchases of Russian oil. U.S. Treasury officials urged Group of Seven allies to impose ‘meaningful tariffs’ on China and India to curb Moscow’s oil revenues and bring Russia closer to peace negotiations over Ukraine. The United States has already slapped an additional 25% tariff on Indian goods over oil imports, but has held back on imposing similar measures on China.
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