The Trade Tango Between the U.S. and China: A Pending 'Shake-up'?
Trade talks between the U.S. and China remain unused, asserts Treasury secretary
In the dance of global trade, the US and China are taking a few tentative steps towards a potential 'shake-up', as both nations grapple with the aftermath of steep tariffs on each other's imports.
For some time now, the United States hasn't engaged in formal trade negotiations with China, with both Washington and Beijing slapping hefty tariffs on their respective imports, according to Treasury Secretary Scott Bessent.
"China, we haven't been dancing yet," Bessent told lawmakers on Tuesday.
The Trump administration burst onto the international trade scene with a barrage of tariffs across various countries on April 2, following years of critique over other countries' trade practices and accusations of unfair practices.
The administration later defused its initial proposal and announced on April 9 that it would instantly surge tariffs on Chinese goods to a staggering 145%, but reciprocal tariffs on other nations were scaled back for 90 days to a baseline of 10%. In response, China hiked its tariffs on US goods to 125%.
President Donald Trump noted that China seemed eager to meet with the US, stating, "They want to dance, and they're not dancing right now ... By not partnering up, we're not losing anything."
WHAT'S REALLY BEHIND TRUMP'S TARIFF GALA? A CLOSER LOOK
The US has yet to engage in trade negotiations with China, with both nations slapping hefty tariffs against each other's imports, according to Treasury Secretary Scott Bessent. (Photo by Mandel Ngan/AFP via Getty Images)
President Trump has given hints of a softening stance on the tariffs imposed on Chinese imports but affirmed that he would not be the first to budge by initiating a decline in tariffs.
"At some point, I'll lower them because otherwise, you can't conduct business with them," Trump said in an interview published Sunday on NBC's "Meet the Press with Kristen Welker." "They want to do business very badly... their economy is taking a tumble."
Trump also stated on Air Force One Sunday that he is seeking a fair trade deal with China and added that the US and China were discussing various issues.
Chinese officials have expressed an interest in holding talks with the US and acknowledged statements from US officials indicating a willingness to negotiate. However, China has stressed that the US must first remove the existing tariffs on US imports before any talks can commence.
"The tariff and trade wars were unilaterally instigated by the US," China's Commerce Ministry said in a statement Friday. "If the US side wants to dance, it should demonstrate its sincerity and be prepared to address issues such as rectifying past actions and canceling unilateral tariffs."
Trump has long championed tariffs and the White House has urged tariffs to address the country's record $1.2 trillion trade deficit in 2024, claiming that they will revive US manufacturing jobs.
WHAT'S REALLY BEHIND TRUMP'S TARIFF GALA? A CLOSER LOOK
President Donald Trump signs an executive order imposing tariffs on imported goods during a White House event on April 2. (Credit: Andrew Harnik/Getty Images)
Bessent forecasted in April that the tariffs could cost China up to 10 million jobs and suggested that China should remove the existing tariffs on US imports to alleviate the impact.
"I believe that over time, we'll see that the Chinese tariffs are unsustainable for China," Bessent told reporters at the White House on April 29. "I've seen some eye-opening numbers recently suggesting that if these numbers hold, China could lose 10 million jobs quickly. Even if there's a drop in the tariffs, they could lose 5 million jobs."
"Remember, we're the deficit country," Bessent added. "They sell almost five times more goods to us than we sell to them. The onus will be on them to take off these tariffs. They're unsustainable for them."
Bessent also told lawmakers on Tuesday that significant trade deals could be announced "as early as this week."
This report includes contributions from the Associated Press.
- Treasury Secretary Scott Bessent claims that the United States and China have yet to engage in formal trade negotiations, with both nations imposing hefty tariffs on their respective imports.
- President Donald Trump stated in an interview that he would not be the first to lower tariffs on Chinese imports, but hinted at a potential softening stance.
- Chinese officials have expressed an interest in holding talks with the US, but have emphasized that existing tariffs on US imports must be removed before any negotiations can begin.
- Bessent forecasted that the tariffs could cost China up to 10 million jobs and suggested that China should remove the existing tariffs on US imports to alleviate the impact.
- Bessent also warned that significant trade deals could be announced "as early as this week".
- In the world of business, finance, policy-and-legislation, and general news, the ongoing trade tensions between the US and China, particularly with regards to tariffs, have become a matter of global concern, potentially impacting economies and businesses worldwide.
