Why US-China trade talks have suddenly stalled
What's the story
US Treasury Secretary Scott Bessent has said that the trade negotiations between the US and China have stalled. He hinted that President Donald Trump and Chinese President Xi Jinping may need to step in to break the deadlock. The two nations had earlier agreed to a 90-day pause on reciprocal tariffs, but now, it seems like more leadership involvement may be needed due to the complexity of these issues.
Stalled negotiations
Bessent's remarks on stalled trade talks
Bessent told Fox News that the trade talks with China are "a bit stalled." He added, "I believe that we will be having more talks with them in the next few weeks, and I believe we may, at some point, have a call between the President and Party Chair Xi." This indicates an expectation of future discussions to revive stalled negotiations.
Tariff reduction
Truce details and future discussions
The US and China had agreed to a truce on May 12, under which Washington would reduce the tariff on Chinese imports from 145% to 30%, and Beijing would lower its import duty on American goods from 125% to 10%. Bessent stressed that given the complexity of these talks, both leaders will have to weigh in with each other. He expressed confidence that the Chinese would respond when President Trump's preferences were made known.
Leadership impact
Bessent's confidence in US-China relations
Bessent also expressed his belief in the strong relationship between Trump and Xi. He said, "They have a very good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known." This statement highlights his faith in diplomatic ties as a key factor for future trade negotiations.