Washington: Top officials from the US and China have concluded two days of talks, which both sides have described as "constructive," by agreeing to continue efforts to extend their 90-day tariff truce. China's trade negotiator Li Chenggang stated that Beijing and Washington have agreed to push for the preservation of the truce, under which both countries have temporarily suspended some measures against each other. However, US Treasury Secretary Scott Bessent emphasized that any extension would require the approval of President Donald Trump.
According to BBC, Trump initiated tariff hikes on Chinese goods shortly after returning to the White House, prompting China to respond with its own tariffs. The situation escalated, with tariff rates reaching triple digits, until a trade truce was established in May. This agreement left Chinese goods facing an additional 30% tariff compared to the start of the year, while US goods incurred a new 10% tariff in China. Without an extension of the truce by the August 12 deadline, US officials warned that tariffs could "boomerang" back up.
Bessent stated, "Nothing is agreed until we speak with President Trump," while minimizing the risks of escalation. He added, "Just to tamp down that rhetoric, the meetings were very constructive. We just haven't given the sign off." Apart from tariffs, Beijing and Washington have been at odds over various issues, including US demands for China's ByteDance to sell TikTok to an American company and for China to expedite its export of critical minerals. This meeting marked the third negotiation between the US and China since April.
Negotiators discussed each other's economies, the implementation of terms previously agreed upon by Trump and Chinese President Xi Jinping, and rare earths, which remain a key sticking point due to their importance in new technologies such as electric vehicles. The US also pressed China on its dealings with Russia and Iran. Li Chenggang emphasized the significance of maintaining a stable and sound China-US trade and economic relationship.
Bessent expressed optimism about the US's momentum following recent agreements secured by Trump with Japan and the European Union. He commented, "I believe they were in more of a mood for wide-ranging discussion." President Trump has long voiced concerns about the trade deficit with China, which last year resulted in the US purchasing $295 billion more goods from China than vice versa. US Trade Representative Jamieson Greer noted that the US is on track to reduce that gap by $50 billion this year.
Bessent clarified that the US is not seeking to completely "de-couple," but rather to "de-risk" certain strategic industries, including rare earths, semiconductors, and medicines, as he addressed reporters following the conclusion of the talks.