Madrid: U.S. and Chinese officials entered the second day of trade negotiations in Madrid on Monday, focusing on key issues including tariffs, economic tensions, and the looming deadline for ByteDance to divest TikTok’s U.S. operations.

The discussions are being led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng at Spain’s Palacio de Santa Cruz. A central topic is the September 17 deadline for ByteDance to divest its U.S. operations of TikTok. Sources indicate that the U.S. administration may extend the deadline, but analysts suggest any significant resolution could require direct talks between Presidents Donald Trump and Xi Jinping.

The Madrid talks mark the fourth round of negotiations following a 90-day trade truce agreed upon in July. The truce had previously led to reduced tariffs and the resumption of rare-earth exports from China to the United States. Despite these steps, experts have low expectations for major breakthroughs during the Madrid sessions.

Another focus of the discussions is global trade pressure regarding Russian oil. Treasury Secretary Bessent has urged Group of Seven allies to impose tariffs on imports from China and India to discourage the purchase of Russian oil, aiming to reduce Moscow’s revenue stream for its military operations in Ukraine.

In the United States, Democratic lawmakers are pressing the administration to secure binding measures in any trade agreement that would require China to reduce structural overproduction in industries such as steel and solar panels. Lawmakers argue that overcapacity in these sectors has negatively impacted U.S. jobs and industries.

As the talks continue, attention remains on the potential extension of the TikTok divestment deadline, developments on tariffs, and broader economic policies. A concluding press briefing is expected Monday afternoon, signaling a possible wrap-up of the Madrid negotiations.