Recent statements reveal that trade negotiations between the US and China have lost their momentum, according to Treasury Secretary Scott Bessent.
China-US Trade Talks Encounter Setback, Treasury Secretary Reports
China-US Trade Talks Encounter Setback, Treasury Secretary Reports
Ongoing discussions amid temporary truce emphasize complexities ahead
The US Treasury Secretary Scott Bessent has declared that trade discussions between the United States and China are currently "a bit stalled." This announcement follows a temporary truce, made just weeks ago, that saw the two major economies agree to lower tariffs previously imposed on each other. In an interview with Fox News, Bessent indicated that the intricate nature of the talks necessitated engagement from the nations' respective leaders to push the negotiations forward.
Earlier this month, the US and China reached a pivotal agreement during their Swiss talks, effectively reducing tariffs from 145% for US goods to 30%, while China's retaliatory tariffs dropped from 125% to 10%. The recent setback appears to have impacted President Trump's global tariff strategy, which was recently challenged in court, resulting in an injunction claiming the president exceeded his authority. The administration has since appealed this ruling.
According to Bessent, while the momentum of the talks has waned, discussions are still ongoing. He expressed optimism that the leaders would reconvene soon, hinting at the potential for a phone call between President Trump and Chinese President Xi Jinping. Bessent asserted that both leaders share a strong rapport and believes China will respond once Trump's trade priorities are articulated clearly.
As US officials continue to engage in trade negotiations with Japan as well, Bessent mentioned that several trade deals are nearing completion but acknowledged challenges remain with a few. The president's tariff policies, previously seen as tools to foster American manufacturing and reduce foreign trade deficits, may now face increased scrutiny following the recent court ruling. The outcome of the appeal could influence other nations' eagerness to engage with the US on trade matters.
Concerns linger as the White House maintains its position in the legal battle over tariffs, with Trump labeling the court's decision as "horrific" and expressing confidence that the Supreme Court will rectify the situation swiftly. Meanwhile, market reactions have been positive amid the tariff reductions agreed upon earlier this month, but the future of Trump's trade strategy hangs in the balance as negotiations continue.
In summary, while trade dialogues persist, the challenges and complexities surrounding these negotiations highlight the uncertainties facing both the US and China as they navigate their economic relationship moving forward.
Earlier this month, the US and China reached a pivotal agreement during their Swiss talks, effectively reducing tariffs from 145% for US goods to 30%, while China's retaliatory tariffs dropped from 125% to 10%. The recent setback appears to have impacted President Trump's global tariff strategy, which was recently challenged in court, resulting in an injunction claiming the president exceeded his authority. The administration has since appealed this ruling.
According to Bessent, while the momentum of the talks has waned, discussions are still ongoing. He expressed optimism that the leaders would reconvene soon, hinting at the potential for a phone call between President Trump and Chinese President Xi Jinping. Bessent asserted that both leaders share a strong rapport and believes China will respond once Trump's trade priorities are articulated clearly.
As US officials continue to engage in trade negotiations with Japan as well, Bessent mentioned that several trade deals are nearing completion but acknowledged challenges remain with a few. The president's tariff policies, previously seen as tools to foster American manufacturing and reduce foreign trade deficits, may now face increased scrutiny following the recent court ruling. The outcome of the appeal could influence other nations' eagerness to engage with the US on trade matters.
Concerns linger as the White House maintains its position in the legal battle over tariffs, with Trump labeling the court's decision as "horrific" and expressing confidence that the Supreme Court will rectify the situation swiftly. Meanwhile, market reactions have been positive amid the tariff reductions agreed upon earlier this month, but the future of Trump's trade strategy hangs in the balance as negotiations continue.
In summary, while trade dialogues persist, the challenges and complexities surrounding these negotiations highlight the uncertainties facing both the US and China as they navigate their economic relationship moving forward.
