Potential Resumption of U.S.-China Trade Talks Amid Rising Tariff Tensions
U.S. officials indicate a conversation between Presidents Trump and Xi Jinping could address escalating trade disputes.
Washington, United States – Escalating trade tensions between the United States and China may find a resolution in an upcoming conversation between Presidents Donald Trump and Xi Jinping, high-ranking U.S. officials suggested on Sunday.
President Trump reignited disputes over tariffs on Friday, accusing Beijing of failing to adhere to the terms of a de-escalation agreement negotiated between the two nations on May 12 in Geneva.
The agreement, which temporarily suspended escalating trade measures, had raised tariffs on U.S. products to 125% and on Chinese products to 145%.
Following two days of negotiations, the countries had agreed to reduce tariffs to 30% on U.S. goods and 10% on Chinese goods while committing to continue discussions to finalize a trade pact.
Scott Bessent, U.S. Treasury Secretary, remarked that China is holding back essential products crucial for the supply chains in India and Europe, describing this behavior as inconsistent with that of a reliable trading partner.
He expressed confidence that the upcoming communication between Trump and Xi could lead to a resolution of these issues.
The complications reportedly stem from China's slow processing of new export licenses for rare earths and other components necessary for semiconductors and automobile production, as per industry sources.
Bessent noted that the situation regarding China's supply of agreed products could stem from either systemic failures or intentional actions.
When asked about the timing of the dialogue between the two leaders, Bessent indicated, "I think we'll see something very soon." Kevin Hassett, the White House's chief economic advisor, similarly suggested that direct contact could occur within the week.
Howard Lutnick, U.S. Secretary of Commerce, stated, "The President knows what he needs to do and will find a solution, I am confident of that."
Separately, on Wednesday, the U.S. International Trade Court blocked the reciprocal tariffs of at least 10% requested by Trump, alongside tariffs against Canada, Mexico, and China regarding the opioid crisis.
The court ruled that only Congress had the authority to impose such tariffs.
The judges determined that the President could not invoke the 1977 International Emergency Economic Powers Act (IEEPA) to impose an “unlimited surcharge on products from virtually any country” via executive order.
An appellate court has temporarily halted this ruling pending a decision on the underlying matter.
Hassett explained that the invocation of the 1977 law was a response to a declared "national emergency." He emphasized, "We have explored all possible avenues to implement the President’s tariff agenda."
The discourse surrounding securing U.S. steel supply, as well as Europe's independence from Chinese dumping in the steel sector, is expected to feature prominently in the forthcoming negotiations between Trump and Xi Jinping.
President Trump reignited disputes over tariffs on Friday, accusing Beijing of failing to adhere to the terms of a de-escalation agreement negotiated between the two nations on May 12 in Geneva.
The agreement, which temporarily suspended escalating trade measures, had raised tariffs on U.S. products to 125% and on Chinese products to 145%.
Following two days of negotiations, the countries had agreed to reduce tariffs to 30% on U.S. goods and 10% on Chinese goods while committing to continue discussions to finalize a trade pact.
Scott Bessent, U.S. Treasury Secretary, remarked that China is holding back essential products crucial for the supply chains in India and Europe, describing this behavior as inconsistent with that of a reliable trading partner.
He expressed confidence that the upcoming communication between Trump and Xi could lead to a resolution of these issues.
The complications reportedly stem from China's slow processing of new export licenses for rare earths and other components necessary for semiconductors and automobile production, as per industry sources.
Bessent noted that the situation regarding China's supply of agreed products could stem from either systemic failures or intentional actions.
When asked about the timing of the dialogue between the two leaders, Bessent indicated, "I think we'll see something very soon." Kevin Hassett, the White House's chief economic advisor, similarly suggested that direct contact could occur within the week.
Howard Lutnick, U.S. Secretary of Commerce, stated, "The President knows what he needs to do and will find a solution, I am confident of that."
Separately, on Wednesday, the U.S. International Trade Court blocked the reciprocal tariffs of at least 10% requested by Trump, alongside tariffs against Canada, Mexico, and China regarding the opioid crisis.
The court ruled that only Congress had the authority to impose such tariffs.
The judges determined that the President could not invoke the 1977 International Emergency Economic Powers Act (IEEPA) to impose an “unlimited surcharge on products from virtually any country” via executive order.
An appellate court has temporarily halted this ruling pending a decision on the underlying matter.
Hassett explained that the invocation of the 1977 law was a response to a declared "national emergency." He emphasized, "We have explored all possible avenues to implement the President’s tariff agenda."
The discourse surrounding securing U.S. steel supply, as well as Europe's independence from Chinese dumping in the steel sector, is expected to feature prominently in the forthcoming negotiations between Trump and Xi Jinping.
