US-China Trade Talks Lose Momentum Amid Legal Hurdles Over Tariffs

Trade negotiations between the United States and China have slowed down, despite a recent agreement to reduce tariffs. US Treasury Secretary Scott Bessent said on Thursday that talks are “a bit stalled,” mainly due to their complexity, and may now require the direct involvement of both President Donald Trump and Chinese President Xi Jinping.

Earlier this month, the two countries reached a temporary trade truce during discussions in Switzerland. As part of that agreement, both sides agreed to either cancel or suspend some tariffs for 90 days. The US dropped tariffs on Chinese imports from 145% to 30%, while China reduced its retaliatory tariffs on American goods from 125% to 10%. 

Bessent expressed hope that further talks would continue in the coming weeks, possibly with a direct call between the two leaders. He added that both share a good relationship and expects China to respond when Trump makes his position clear.

However, the trade strategy has faced legal obstacles. A US court recently ruled that Trump overstepped his authority by imposing the tariffs. Although a federal appeals court has temporarily reinstated the duties after the White House appealed, the final outcome remains uncertain. Trump criticized the ruling as “horrific” and hopes the Supreme Court will overturn it.

In the meantime, US trade discussions with other countries, including Japan, are ongoing. Bessent said some deals are close to being finalized, while others remain more complicated.