There is a paradigm shift underway. And it’s all coming to a head.
Now a China-America showdown is heating up after a desperate call for reinforcements.
Navigating a Stalled U.S.-China Trade Dialogue
Following a 90-day tariff truce agreed upon earlier this month in Switzerland, discussions for a lasting trade agreement between the U.S. and China have slowed.
“I would say that they are a bit stalled,” Bessent said during an interview with Fox News “Special Report” host Bret Baier.
He expressed optimism about future progress, noting, “I believe that we will be having more talks with them in the next few weeks, and I believe we may at some point have a call between the president and party chair [Xi Jinping].”
Bessent emphasized the complexity of the negotiations, stating, “I think that, given the magnitude of the talks, given the complexity – this is going to require both leaders to weigh in with each other.” He added, “They have a very good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known.”
The truce reduced U.S. tariffs on most Chinese goods from 145% to 30% and China’s tariffs from 125% to 10%, with a mechanism for continued talks toward a permanent deal, as confirmed by the White House.
Advancing Trade Agreements with Other Nations
While U.S.-China talks have slowed, Bessent highlighted significant progress in negotiations with other countries. “There are a couple of very large deals that are close. A couple of them are more complicated,” he told Baier.
He pointed to the European Union’s rapid response to President Trump’s recent tariff threats as a sign of momentum, noting, “And as we saw with the president’s threat of 50% tariffs last Friday, the EU came to the table very quickly over the weekend – so now we’ve got the EU in motion also.”
Bessent also mentioned an upcoming meeting, stating, “As a matter of fact, I have a very large Japanese delegation coming to my office first thing tomorrow morning.”
These developments suggest the Trump administration is actively pursuing multiple trade agreements to strengthen global economic ties, even as challenges persist with China.
Overcoming Legal Hurdles in Tariff Policy
On Wednesday, May 28, 2025, the Court of International Trade ruled that President Trump exceeded his authority under the International Emergency Economic Powers Act by imposing a 10% flat duty on dozens of countries, alongside 25% tariffs on Canada and Mexico and 20% on China, in response to illegal fentanyl trafficking.
However, a federal appeals court stayed the ruling on Thursday, allowing the White House to appeal. Bessent downplayed the impact of the legal dispute on ongoing trade negotiations, stating, “We’ve seen no change in [US trading partner] attitude in the past 48 hours.”
He emphasized continued engagement with international partners, particularly noting the scheduled Japanese delegation visit, signaling that trade discussions remain robust despite the court’s decision.
The Trump administration’s trade strategy continues to balance challenges with China, legal disputes, and promising negotiations with other global partners, aiming to reshape U.S. economic relationships.
