Only Trump and Xi Can Strike a Deal, Says Bessent, as U.S.–China Trade Talks Stall

🔍 Key Points: 🔹 U.S.–China trade negotiations have stalled, and Finance Minister Scott Bessent says only a direct conversation between Trump and Xi can move things forward

🔹 A recent 90-day tariff truce calmed markets, but core disputes remain unresolved

🔹 Despite a trade court ruling against Trump’s tariffs, a federal appeals court has reinstated them

🔹 Meanwhile, talks continue with Japan, India, and the European Union

Talks at a Standstill—Only Trump and Xi Can Break the Deadlock According to U.S. Treasury Secretary Scott Bessent, trade negotiations between the United States and China have lost momentum, and a personal intervention from President Donald Trump and Chinese President Xi Jlnping may be the only way to make real progress. In a Thursday interview with Reuters, Bessent said that little has changed since mid-May, though he expects further discussions in the coming weeks. “I believe there could eventually be a phone call between President Trump and Chairman Xi,” Bessent remarked. Truce Brought Relief, But Deeper Issues Persist Two weeks ago, Bessent led a critical round of talks between the world’s two largest economies, resulting in a 90-day pause on new tariffs. The move sparked a rally across global stock markets. However, core American concerns—particularly about China’s state-controlled, export-driven economy—remain unaddressed. Bessent emphasized that the complexity and scale of the issues will likely require personal involvement from both leaders. He added that Trump and Xi share a productive working relationship, which could help reignite talks.

Tariffs Remain in Place Despite Legal Pushback While a U.S. trade court recently ruled that Trump had exceeded presidential authority in imposing many of the tariffs, the federal appeals court overruled the decision less than 24 hours later. The court has given plaintiffs until June 5 to respond and the government until June 9. In the meantime, Trump’s tariffs will remain in effect while the appeal proceeds.

U.S. Continues Talks With Global Partners Amid Legal Confusion Despite legal uncertainty, the Trump administration is continuing tariff negotiations with Japan, India, and the European Union. Last week, Trump threatened to impose 50% tariffs on EU goods, only to suspend that threat shortly after. Bessent stated that partners like Japan remain engaged in good faith, and he is scheduled to meet with a Japanese delegation in Washington this Friday to continue talks. He also noted that there has been no major shift in trade partners’ positions following the recent court rulings, underscoring the need for clear direction and high-level diplomacy.

Summary: With talks between Washington and Beijing stuck in neutral, Bessent believes it’s time for President Trump and President Xi to step in directly. Tariffs remain active, markets are volatile, and the U.S. continues trade talks on multiple fronts. For now, all eyes are on the two global leaders to make the next move.

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