BEIJING – US Treasury Secretary Scott Bessent has acknowledged that the ongoing tariff negotiations between the United States and China have reached an impasse, suggesting that direct talks between the presidents of both nations may be necessary.

Bessent stated that the US will continue discussions over the coming weeks. However, given the complexity and significance of the issue, he emphasised the need for direct communication between Xi Jinping and Donald Trump.

“I believe we might at some point have a call between the president and party chair Xi,” Bessent told Fox News, as quoted by the Financial Times.

Previously, the US and China had agreed to reduce mutual import tariffs—from 145% to 30% on Chinese goods, and from 125% to 10% on US goods—for a period of 90 days following a meeting in Switzerland on 12 May 2025.

During this 90-day window, lasting through mid-August, the two nations pledged to continue discussions to reach a “broader agreement”. However, Bessent’s remarks suggest the talks are not progressing as smoothly as anticipated.

Since the deal, the US has ramped up its global campaign against the use of Chinese AI chips, particularly those from Huawei, citing concerns over China’s growing technological capabilities in the military and intelligence sectors.

Additionally, the US-UK tariff agreement signed on 8 May triggered backlash from China, as the new rules are seen as potentially excluding China from the UK’s supply chain.

President Xi, during a meeting with Latin American leaders at the China-CELAC Forum in Beijing on 12 May, criticised the US for what he described as “unilateral bullying” of other countries.

Despite tensions, Bessent remains optimistic about future cooperation. “They have a good relationship, and I believe China will be willing to negotiate if President Trump outlines his priorities,” he said.

However, Trump’s tariffs are currently facing legal challenges within the US, with critics claiming he overstepped his authority by imposing widespread import duties without congressional approval.

Although Trump has so far avoided legal defeat temporarily, the proceedings are ongoing, with the next hearing scheduled for 5 June, according to the BBC. (ZH)