US-China trade talks stall despite recent tariff reductions, Treasury Secretary says, as negotiations await high-level intervention.
Trade negotiations between the United States and China have slowed, according to remarks made by U.S. Treasury Secretary Scott Bessent. This development follows a recent temporary agreement between the two nations to ease reciprocal tariffs, signaling a potential pause in diplomatic momentum.
Speaking on Fox News, Bessent acknowledged the challenges of the discussions, stating,
"Given the scale and complexity of these negotiations, it will likely require direct engagement between the leaders of both countries to move forward."
His comments come less than three weeks after the U.S. and China announced mutual tariff reductions following high-level talks in Switzerland.
The earlier agreement included the suspension or cancellation of certain tariffs, with a deadline set for mid-May. However, Bessent noted that while discussions persist, progress has stalled. He expressed optimism, however, that further talks would resume in the coming weeks, possibly involving a direct conversation between President Joe Biden and Chinese President Xi Jinping.
Under the terms of the recent deal, the U.S. reduced tariffs on Chinese goods from 145% to 30%, while China lowered its retaliatory tariffs on American imports from 125% to 10%. The Biden administration has maintained that tariffs serve as a strategic tool to address trade imbalances and encourage domestic manufacturing.
Meanwhile, the legal standing of U.S. tariff policies remains uncertain after a federal court ruled that previous administrations had overstepped their authority in imposing certain duties. Although an appeals court temporarily reinstated the measures, the decision has raised questions about the long-term viability of using tariffs as a negotiating tactic.
Bessent also addressed ongoing trade discussions with other nations, noting that while some agreements are nearing completion, others remain complex. Analysts suggest that the legal uncertainty surrounding U.S. tariff policies may influence how quickly foreign governments commit to new trade deals.
The White House has defended its approach, emphasizing the importance of tariffs in protecting American industries. However, critics argue that prolonged trade disputes could disrupt global markets and economic stability.
