US-China trade talks stalled, businesses wait for Trump and Xi to intervene

Trade discussions between the United States and China have reached a standstill, and moving forward may now depend on direct engagement between President Donald Trump and Chinese President Xi Jinping.

Speaking with Fox News, US Treasury Secretary Steven Mnuchin said on Thursday that progress has slowed since the breakthrough talks he led two weeks ago, which resulted in a temporary halt to escalating tariffs between the two economic giants. Despite the slowdown, he expressed hope that more negotiations would resume in the coming weeks.

“I think there’s a chance we’ll see a call between President Trump and Chairman Xi at some point,” Bessent said.

Highlighting the complexity and scale of the issues at hand, he added, “This process is likely to require both leaders stepping in. They have a strong rapport, and I’m confident that China will engage once President Trump signals his direction.”

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The temporary truce, which paused triple-digit tariffs for 90 days, sparked a surge in global markets. However, the underlying concerns that led to the tariffs—particularly U.S. grievances over China’s state-controlled, export-centric economic practices—remain unresolved and are expected to be tackled in future discussions.

Since the mid-May agreement, the Trump administration has shifted focus toward negotiating tariffs with other major trading partners including India Japan, and the European Union. Last week, Trump threatened to impose 50% tariffs on EU products but later postponed the move.

Meanwhile, a U.S. trade court ruled on Wednesday that Trump exceeded his authority when applying most of the tariffs on Chinese and other foreign imports using emergency powers. However, a federal appeals court reversed that ruling the following day, placing a temporary hold while it reviews the government’s appeal. The court directed the plaintiffs to respond by June 5, with the administration’s reply due by June 9.

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Despite the legal uncertainties, Bessent noted that countries like Japan remain committed to negotiations. He reported no shift in their negotiating positions following the court developments and confirmed plans to meet with a Japanese delegation in Washington on Friday.