Trade Talks Between US and China Hit Snag; Presidential Dialogue Anticipated

Trade negotiations between the United States and China have encountered difficulties, with Treasury Secretary Scott Bessent describing the situation as “a bit stalled.” He indicated on Thursday that a direct call between President Donald Trump and Chinese leader Xi Jinping might be necessary to move talks forward.

Speaking to Journalists, Bessent said, “I would say that they are a bit stalled,” but remained hopeful about renewed discussions, adding, “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 development follows a significant breakthrough earlier in May, when both countries agreed to a 90-day tariff truce. The US agreed to reduce tariffs on Chinese goods from 145 percent to 30 percent, while China cut its tariffs on US imports from 125 percent to 10 percent. This agreement, reached in Geneva, marked a temporary easing of the trade war that had severely disrupted bilateral commerce.

Bessent emphasized the importance of leadership engagement in such a complex negotiation, stating, “given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other.” He expressed confidence that the Chinese side would respond positively once President Trump signals his intentions.

The tariff reductions come amid economic strains on both sides, with the US GDP recently showing its first quarterly decline since 2022 and China facing a slowdown in manufacturing. The pause in tariff escalation aims to create space for deeper negotiations, though the current stall highlights the difficulties in reaching a long-term agreement.