Treasury Secretary Scott Bessent highlighted the complexities of negotiations, suggesting that deeper involvement from the nations' leaders may be necessary to advance the dialogue.
China and US Trade Talks Hit a Roadblock, Says Treasury Secretary
China and US Trade Talks Hit a Roadblock, Says Treasury Secretary
Ongoing trade discussions between the US and China have plateaued, despite a recent agreement to ease tensions.
In a recent interview with Fox News, US Treasury Secretary Scott Bessent stated that trade talks between the United States and China are currently "a bit stalled." This statement comes after both countries had reached a temporary truce earlier this month, which aimed to alleviate some of the tensions stemming from their ongoing trade war. The temporary agreement had seen both nations agreeing to lower reciprocal tariffs, following discussions held in Switzerland.
Despite the progress made, Bessent acknowledged the challenges that lie ahead, stating, "Given the magnitude of the talks, given the complexity, this is going to require [leaders of both countries] to weigh in with each other." His comments arrived shortly after a court ruling complicated President Trump's global tariff strategy, indicating he overstepped his authority with these trade measures. The ruling has been temporarily reversed as the White House appeals the decision.
Earlier this month, during high-level discussions, both the US and China announced plans to reduce tariffs dramatically. Specifically, tariffs imposed by the United States on Chinese goods were decreased from 145% to 30%, while China’s retaliatory tariffs on American imports dropped from 125% to 10%. The goal behind these tariffs, as stated by President Trump, is to persuade American consumers to buy domestically produced goods. This strategy was designed to not only revive manufacturing jobs but also increase tax revenues, thus serving as leverage in negotiations aimed at reducing trade deficits.
Bessent remains optimistic about the future of these discussions, asserting that further talks with China are anticipated in the coming weeks and expressing confidence in a potential conversation between President Trump and Chinese President Xi Jinping. He emphasized that both leaders share "a very good relationship" and believes that the Chinese government will be responsive once Trump articulates his expectations.
Meanwhile, a Japanese delegation is engaged in trade conversations with US officials in Washington, as Bessent mentioned that while a few US trade deals are nearing completion, others face more complexities. The future of Trump's tariff policies remains uncertain due to the recent judicial ruling, which some analysts warn may deter foreign nations from hastily seeking trade agreements with the US. The administration is taking steps to maintain the tariff regime, with Trump voicing his confidence on social media regarding a favorable resolution from the Supreme Court. Markets have shown positive responses following the recent announcement of tariff reductions between the US and China.
Despite the progress made, Bessent acknowledged the challenges that lie ahead, stating, "Given the magnitude of the talks, given the complexity, this is going to require [leaders of both countries] to weigh in with each other." His comments arrived shortly after a court ruling complicated President Trump's global tariff strategy, indicating he overstepped his authority with these trade measures. The ruling has been temporarily reversed as the White House appeals the decision.
Earlier this month, during high-level discussions, both the US and China announced plans to reduce tariffs dramatically. Specifically, tariffs imposed by the United States on Chinese goods were decreased from 145% to 30%, while China’s retaliatory tariffs on American imports dropped from 125% to 10%. The goal behind these tariffs, as stated by President Trump, is to persuade American consumers to buy domestically produced goods. This strategy was designed to not only revive manufacturing jobs but also increase tax revenues, thus serving as leverage in negotiations aimed at reducing trade deficits.
Bessent remains optimistic about the future of these discussions, asserting that further talks with China are anticipated in the coming weeks and expressing confidence in a potential conversation between President Trump and Chinese President Xi Jinping. He emphasized that both leaders share "a very good relationship" and believes that the Chinese government will be responsive once Trump articulates his expectations.
Meanwhile, a Japanese delegation is engaged in trade conversations with US officials in Washington, as Bessent mentioned that while a few US trade deals are nearing completion, others face more complexities. The future of Trump's tariff policies remains uncertain due to the recent judicial ruling, which some analysts warn may deter foreign nations from hastily seeking trade agreements with the US. The administration is taking steps to maintain the tariff regime, with Trump voicing his confidence on social media regarding a favorable resolution from the Supreme Court. Markets have shown positive responses following the recent announcement of tariff reductions between the US and China.
