Trade negotiations between the United States and China have hit a snag, according to US Treasury Secretary Scott Bessent, just weeks after the two nations reached a temporary truce in their trade war.
The agreement, struck earlier this month in Switzerland, saw both countries agree to a 90-day suspension of some tariffs starting from May 14. Under the deal, the US slashed its tariffs on Chinese imports from 145% to 30%, while China reduced its retaliatory tariffs on American goods from 125% to 10%.
In an interview with Fox News, Bessent said the discussions had become “a bit stalled” but were expected to resume soon. He noted that direct involvement from US President Donald Trump and Chinese President Xi Jinping might be needed to move things forward.
“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 said, noting the leaders’ “very good relationship.”
This pause in talks comes as Trump’s global tariffs policy faces legal hurdles. On Wednesday, the US Court of International Trade ruled that Trump had overstepped his authority in imposing some tariffs. However, the following day, a federal appeals court temporarily reinstated the sweeping tariffs while the case continues.
Trump slammed the ruling on his social media platform, describing it as “horrific” and calling for the Supreme Court to overturn it “quickly and decisively.”
Tariffs have been a central feature of the Trump administration’s trade strategy, aiming to curb trade deficits, support domestic manufacturing, and generate tax revenue by making foreign goods pricier.
Despite these challenges, the US is pressing ahead with trade talks elsewhere. The Trump administration has set a July 9 deadline to strike a trade deal with the European Union.
Trade analysts warn that the legal uncertainties around the tariffs could undermine America’s bargaining power in upcoming negotiations.
