ISLAMABAD: United States Treasury Secretary Scott Bessent has indicated that a phone call between President Donald Trump and Chinese leader Xi Jinping could take place very soon, potentially easing the ongoing trade tensions between the world’s two largest economies.
The announcement comes amid frustration over China’s delays in approving export licenses for critical rare earth materials, part of a recent agreement aimed at reducing tariffs temporarily.
Progress and Challenges in Trade Negotiations
The trade dispute escalated after Trump accused Beijing of breaching a deal reached in Geneva last month, negotiated by Bessent himself.
The agreement was designed to lower tariffs from extremely high levels in a 90-day pause. However, China’s slow processing of export licenses for essential products like rare earth elements, vital for manufacturing cars and computer chips, has sparked US concerns.
Despite this, Bessent expressed optimism, suggesting the issues could be resolved soon once the two leaders communicate directly.
High Stakes Tariff Reductions and Diplomatic Efforts
Since Trump’s return to the presidency, tariffs on Chinese goods soared, with levies reaching triple digits on both sides. The recent de-escalation saw Washington reduce additional tariffs on Chinese imports from 145 percent to 30 percent, while China cut its duties from 125 percent to 10 percent.
Commerce Secretary Howard Lutnick criticized China for “slow-rolling” the deal, hinting at retaliatory measures from the US. Still, both officials remain hopeful that direct dialogue between Trump and Xi will help iron out the remaining issues and stabilize the trade relationship.
