US Treasury Secretary Scott Bessent revealed on Thursday that trade negotiations between the United States and China have reached a “bit stalled” phase, indicating that progress has slowed after recent discussions. Speaking to Journalists, Bessent suggested that a direct conversation between President Donald Trump and Chinese President Xi Jinping might be necessary to break the deadlock.
“I would say that they are a bit stalled,” Bessent commented, emphasizing the complexity of the ongoing talks. He expressed optimism about resuming dialogue soon, stating, “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.”
Earlier this month, the two largest economies agreed to a surprising 90-day truce in their trade war, temporarily rolling back tariffs. Under this agreement, the US reduced tariffs on Chinese imports from 145 percent to 30 percent, while China lowered its tariffs on American goods from 125 percent to 10 percent. This de-escalation followed high-level meetings in Geneva, signaling a willingness to negotiate further.
Bessent noted the significance of leadership involvement, saying, “I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other.” He also expressed confidence in China’s willingness to engage once President Trump clarifies his preferences, highlighting the “very good relationship” between the two leaders.
The trade dispute has had broad economic impacts, with both countries experiencing downturns in key sectors. The temporary tariff reductions aim to ease tensions and pave the way for more comprehensive negotiations. However, the current pause in momentum underscores the challenges ahead in resolving the complex trade issues between Washington and Beijing.
