US-china Trade Talks Stall Despite Initial Tariff Reductions

Updated May ⁣30, 2025
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Trade negotiations ‍between teh U.S. and China have ⁤”stalled a bit,” according to U.S. Treasury Secretary Scott ⁣Bessent. His remarks follow a temporary ⁢trade truce reached less than three weeks ago, where both nations agreed ⁢to lower tit-for-tat‍ tariffs.

Bessent told Fox news that the complexity and‍ magnitude of these trade talks on further trade deals will likely⁤ require the ⁤leaders of both countries to become directly involved.⁣ He anticipates further discussions with China in the coming weeks, possibly including a call between President Trump and Chinese President Xi jinping.

Earlier this ⁤month, both the U.S. and China confirmed they would reduce tariffs ⁤on each other’s imports following discussions in ⁤Switzerland. The agreement involved canceling some ‍tariffs entirely and suspending others for⁣ 90 days until May 14.

Under ‍the ⁤initial⁤ agreement, the U.S. reduced tariffs on ‍Chinese‍ goods from‍ 145% to 30%, while China‍ lowered retaliatory tariffs ⁣on U.S. goods from 125% to 10%. The‍ Trump administration has used tariffs as leverage in negotiations to reduce trade deficits, arguing they encourage ‍consumers to buy American-made products and bring⁤ back manufacturing jobs.

However, President Trump’s global tariff regime faced⁤ a challenge when a ruling⁢ determined he ⁢had exceeded his authority in imposing the duties. A ⁤federal appeals court has ⁤temporarily suspended this order after an appeal ⁤from the White House.

“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],” Bessent saeid.

What’s next

Despite the⁢ current stall in US-China ‍trade talks, Bessent remains optimistic, noting the good relationship between the two presidents and expressing confidence that China will engage constructively when President Trump communicates his preferences. A‍ delegation from Japan is also in Washington⁣ for ongoing ⁤trade talks with their U.S. counterparts.