Trade Negotiations Between US and China Encounter Delays

The US and China, after a temporary trade truce, see trade talks lose momentum, prompting hopes for renewed dialogues.

Trade negotiations between the United States and China have hit a snag, with US Treasury Secretary Scott Bessent recently stating that the discussions are "a bit stalled." This revelation emerges just weeks after both nations reached a temporary truce in their ongoing trade war, which was characterized by a mutual agreement to ease retaliatory tariffs.

Bessent shared these insights during an appearance on Fox News, underscoring that the complexity and scale of the negotiations necessitate significant involvement from the leadership of both countries. "I think that given the magnitude of the talks, given the complexity, this is going to require [leaders of both the countries] to weigh in with each other," he remarked.

In addition to these trade talks, former president Donald Trump's tariffs regime faced a recent setback due to a court ruling stating he had overstepped his authority. Although the White House is appealing the decision, resulting in a temporary reinstatement of the tariffs, questions linger regarding its future.

Earlier agreements saw both the US and China committing to mutually reduce tariffs on imports, a decision stemming from discussions held in Switzerland. The United States agreed to slash its import tariffs from an extraordinary 145% down to 30%, while China reciprocated by lowering its tariffs on US goods from 125% to 10%.

Bessent reassured that negotiations are ongoing. "I believe that we will be having more talks with [China] in the next few weeks, and I believe we may at some point have a call between the president and [Chinese President Xi Jinping]," he noted. He expressed confidence in the relationship between the leaders, emphasizing that the Chinese would likely return to negotiations once President Trump outlines his preferences.

The Treasury Secretary also highlighted that while some trade deals are "very close," others present greater complexities that could delay finalization. Meanwhile, trade dialogue between Japan and the US continues, as delegates from Japan engage in talks with their American counterparts.

The uncertainty surrounding Trump's tariffs remains palpable, particularly after a ruling by the US Court of International Trade, which stated that his tariff imposition exceeded presidential authority. This has led some analysts to speculate that countries might hesitate to forge quick trade agreements with the US. The White House's appeal to this ruling has granted them temporary leeway, leading Trump to label the initial court decision as "horrific" on his Truth Social platform.