Senior U.S. and Chinese negotiators meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of a trade war between the world’s top two economies, aiming to extend a truce keeping sharply higher tariffs at bay.
Reuters
China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump‘s administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs.
Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100%.
The Stockholm talks, led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, come right on the heels of Trump’s biggest trade deal yet, with the European Union accepting a 15% tariff on its goods exports to the U.S. and agreeing to make significant EU purchases of U.S. energy and military equipment.
That deal struck with European Commission President Ursula von der Leyen on Sunday in Scotland also calls for $600 billion in investments in the U.S. by the EU, Trump told reporters.
No similar breakthrough is expected in the U.S.-China talks, but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely.
An extension of that length would prevent further escalation and help create conditions for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November.
Spokespersons for the White House and U.S. Trade Representative’s office did not immediately respond to requests for comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or take other steps that could escalate the trade war for another 90 days.
Trump’s administration is poised to impose new sectoral tariffs that will impact China, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. “We’re very close to a deal with China. We really sort of made a deal with China, but we’ll see how that goes,” Trump told reporters before his meeting with von der Leyen, providing no further details.
Previous U.S.-China trade talks in Geneva and London in May and June focused on bringing U.S. and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia’s H20 AI chips and other goods halted by the United States.
So far, the talks have not delved into broader economic issues. They include U.S. complaints that China’s state-led, export-driven model is flooding world markets with cheap goods, and Beijing’s complaints that U.S. national security export controls on tech goods seek to stunt Chinese growth.
“Stockholm will be the first meaningful round of U.S.-China trade talks,” said Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum.
Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines, into deals accepting higher U.S. tariffs of 15% to 20%.
Analysts say the U.S.-China negotiations are far more complex and will require more time. China’s grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on U.S. industries.
In the background of the talks is speculation about a possible meeting between Trump and Xi in late October.
Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Xi.
“The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,” said Wendy Cutler, vice president at the Asia Society Policy Institute.
Bessent has already said he wants to work out an extension of the August 12 deadline to prevent tariffs snapping back to 145% on the U.S. side and 125% on the Chinese side.
Still, China will likely request a reduction of multi-layered U.S. tariffs totaling 55% on most goods and further easing of U.S. high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the U.S. trade deficit with China, which reached $295.5 billion in 2024.
China is currently facing a 20% tariff related to the U.S. fentanyl crisis, a 10% reciprocal tariff, and 25% duties on most industrial goods imposed during Trump’s first term.
Bessent has also said he would discuss with He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending.
Michael Froman, a former U.S. trade representative during Barack Obama‘s administration, said such a shift has been a goal of U.S. policymakers for two decades.
“Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,” said Froman, now president of the Council on Foreign Relations think tank.
Lululemon Athletica’s CEO shake-up has put the spotlight on the once-dominant yoga pants maker’s race to wrest back younger and affluent shoppers from rivals and revive its sagging U.S. business.
Calvin McDonald – Reuters
Its shares, which have halved in value this year, rose 10% on Friday following the departure of CEO Calvin McDonald after about seven years in the role.
An athleisure pioneer known for its premium yoga apparel, Lululemon lost ground as newer rivals such as Alo Yoga and Vuori weaned away its core younger shoppers with trendier styles, marketing campaigns and celebrity partnerships.
Meanwhile, established players like Nike and Gap also entered the market with lower-priced styles.
Lululemon “caught the perfect wave in fashion, becoming the trend for the last five years,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.
“But as its core customers graduate college and face tighter budgets, affordability is a challenge and a new outfit at Lulu can cost as much as a month’s groceries.”
Lululemon sells a range of yoga, running and training apparel such as Align yoga pants priced at $108 and men’s joggers at $128.
The slow refresh to core styles and product missteps, such as its decision to pull its $98 “Breezethrough” leggings from shelves last year, have led to heavy discounting to clear aged inventory.
At an earnings call late on Thursday, company executives said the board is “focused on a leader with experience and growth and transformation”.
“It’s understandable to think that a strategic overhaul with a new leader at the helm will be a positive, but this opens the door to more questions as to what direction the board will go with a replacement,” said Jay Woods, chief market strategist at Freedom Capital Markets.
Lululemon is the latest global consumer company facing leadership churn as macroeconomic uncertainty fuels increasingly divergent spending patterns.
Lululemon is making efforts to speed up product development, launch fresh styles and drive company-wide efficiencies to offset cost inflation and protect margins.
The company beat third-quarter results, lifted by strong China sales, but issued a weaker-than-expected holiday forecast as higher promotions and increased spending on marketing weigh on margins.
Founder Chip Wilson, who is also Lululemon’s largest independent shareholder, in a statement on Friday slammed the board for “poor succession planning” and value erosion.
He called for an urgent CEO search led by new, independent directors with deep company knowledge to restore a product-first focus. Lululemon did not immediately respond to a Reuters request for comment on Wilson’s statement.
The company’s forward price-to-earnings multiple, a common benchmark for valuing stocks, is 14.66, compared to 31.26 for Nike and Abercrombie & Fitch‘s ratio of 10.8, according to LSEG data.
“The main challenge I foresee for the new leadership is not how consumers see Lulu, but how does it see itself?” said Mulberry.
Ferragamo appoints Alberto Tomba as a brand ambassador. The collaboration with the Italian skiing legend celebrates values shared by the Florentine fashion house: dedication, perseverance, resilience and attention to detail.
Alberto Tomba
Born in 1966, Tomba is the quintessential emblem of an Italy that invests in talent, commitment and the ability to push beyond one’s limits. His career is marked by major international successes, including three Olympic gold medals and two silver medals, two World Championship gold medals and two bronze medals, and 50 World Cup victories.
The Bologna-born skier is also the only athlete to have won races in 11 consecutive seasons (1987-1998) and to have claimed four World Cup discipline titles in giant slalom and four in slalom.
“Tomba’s sporting journey perfectly reflects Ferragamo’s philosophy: every achievement comes from sacrifice, every result from dedication. We share with him a deep sense of authenticity and a love of excellence, values that continue to inspire our daily work,” said Leonardo Ferragamo.
“Being chosen by Ferragamo is an honour,” Tomba commented. “I have always believed that sport and style share a common language: that of passion, rigour and the desire to improve every day. Representing a brand that embodies all this, and that brings Italian beauty and craftsmanship to the world, is a source of great pride.”
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New York–based fashion brand Guizio is expanding its retail footprint with the opening of its second store, at Aventura Mall in Miami, this month.
Guizio expands retail footprint with Miami store opening. – Guizio
Designed in collaboration with Brandi Howe, the new Miami store reflects the brand’s refined aesthetic and contemporary edge, while introducing elements inspired by Miami’s vibrant energy.
It opens with a robust assortment of womenswear, along with an exclusive, limited-edition Puma sneaker available only at the Miami location.
“Opening a Guizio store in Aventura Mall is such a special moment for me,” said Danielle Guizio, founder and designer. “It allows us to connect with our community here and share the brand’s energy in a new way. Bringing our world to Miami felt like a natural next step in growing Guizio, and we’re so excited for what’s ahead.”
Guizio founded her namesake womenswear label in 2014 and continues to offer ready-to-wear collections that celebrate the modern-day woman.
Through her collections, woven knits, structured suiting, and signature corsets are emboldened with asymmetrical details, purposeful cut-outs, ruching and custom hardware. The label has become a favorite among talent such as Sabrina Carpenter, Olivia Rodrigo, Rosalia, and more.
The opening follows the success of the brand’s SoHo flagship in New York, which opened in September 2024.
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