Only Trump and Xi can seal trade deal, says Bessent

U.S. trade talks with China are “a bit stalled”. Treasury Secretary Scott Bessent said on Thursday that only direct involvement from President Donald Trump and his Chinese counterpart, Xi Jinping, is likely to push a deal across the finish line.

According to a Reuters report, Bessent noted that progress since mid-May has been slow but added that he expects more negotiations in the coming weeks.

Two weeks ago, Bessent led breakthrough negotiations between the world’s two biggest economies. The talks produced a temporary truce in the trade war and rolled back tariffs for 90 days. That move triggered a massive relief rally in global stock markets but left U.S. complaints untouched about China’s state-dominated, export-driven economic system.

Bessent said, “I believe we may at some point have a call between the president and party Chair Xi.”

He went on to explain that the scale and complexity of these discussions mean both leaders will need to weigh in personally. He added that the two have a good working relationship and that he is confident China will return to the table once President Trump makes his preferences known.

Bessent sees no shift in trading partners’ positions despite court intervention

Since the May deal, the Trump administration has shifted its focus to tariff talks with other major partners, including India, Japan and the European Union. Last week, Trump threatened to impose 50% of the duties on EU goods, only to delay that threat shortly thereafter. Bessent said partners such as Japan have continued to negotiate in good faith despite recent legal challenges.

On Wednesday, a U.S. trade court ruled that the president had exceeded his authority under the Emergency Powers Act by imposing most of those tariffs on imports from China and other nations.

Less than 24 hours later, a federal appeals court paused that ruling and reinstated the tariffs, saying it was pausing the trade court decision to consider the government’s appeal. The appeals court asked the plaintiffs to reply by June 5 and the administration to respond by June 9. That means the duties remain in effect while the appeal moves forward.

Bessent said he detected no shift in trading partners’ positions after the courts intervened. He plans to meet with a Japanese delegation on Friday in Washington to continue negotiations.

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