Prospective Talks Between Trump and Xi Jinping Could Ease Trade Dispute
US Treasury Secretary Scott Bessent indicated that President Donald Trump may soon engage in direct talks with China's President Xi Jinping, potentially alleviating ongoing trade tensions between the two economic powerhouses.
Background of Trade Dispute
Last month in Geneva, the US and China reached a tentative agreement to temporarily lower exceptionally high tariffs imposed on each other. This ceasefire was intended to pause escalating trade conflicts for 90 days, providing space for negotiations.
However, President Trump recently accused Beijing of violating this deal, particularly pointing to China's delayed export license approvals for critical rare earth materials essential for industries including automotive and semiconductors. These developments have heightened US concerns about China's compliance with negotiated terms.
US Officials Express Optimism Despite Challenges
Despite the emerging issues, Bessent expressed confidence on a national broadcast that the differences could be resolved when Trump and Xi speak. He noted, "China was withholding some of the products that they agreed to release during our agreement," acknowledging that rare earth elements were among them.
Regarding the nature of the delay, Bessent suggested it might be an unintentional glitch or a deliberate action, only to be clarified following the planned presidential conversation.
Timeline and Tariff Context
Bessent emphasized that the call between the two leaders could happen very soon, signaling renewed momentum in the negotiations.
Since Trump resumed office, he has implemented sweeping tariffs targeting numerous trading partners, with particularly high rates on Chinese goods. Prior to the temporary pause, tariffs had escalated to triple-digit percentages on both sides.
- The US agreed to reduce tariffs on Chinese imports from 145% to 30%.
- China reciprocated by lowering its additional tariffs from 125% to 10%.
Government Stance and Strategic Response
Commerce Secretary Howard Lutnick conveyed dissatisfaction with China’s slow compliance, describing the behavior as "slow-rolling" the deal. He confirmed the US is taking actions to convey the seriousness of the situation.
Lutnick reaffirmed confidence in the president’s ability to negotiate and resolve these challenges.
Conclusion
The upcoming discussions between President Trump and President Xi Jinping could provide an essential turning point in the US-China trade relationship, potentially easing tariff tensions and restoring cooperation on critical trade issues.
