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U.S. and China Dig In on Trade War, With No Plans for Formal Talks

The New York Times's profile
The New York Times
12h ago

The trade tensions between the United States and China have escalated, with both nations unable to agree on whether negotiations are taking place. President Trump has imposed high tariffs on Chinese imports, prompting China to retaliate with its own tariffs and export restrictions, which has begun to impact global economic growth. Despite the urgency for talks, no formal negotiations are scheduled, and the Trump administration has not appointed an official negotiator for China. The deadlock results from differing negotiation approaches, with China awaiting outcomes of U.S. trade deals with other nations before engaging. This standoff may prolong as both countries believe they are in a winning position, despite the economic consequences of the ongoing trade war.

U.S. and China Dig In on Trade War, With No Plans for Formal Talks

The communication breakdown between the U.S. and China concerning trade negotiations is causing uncertainty in global markets, with no official talks on tariffs currently planned. Treasury Secretary Scott Bessent has deflected questions regarding recent claims of communication between President Trump and President Xi Jinping.

President Trump has imposed reciprocal tariffs on multiple countries, including China, citing unfair trade practices, which have led to a plunge in global financial markets. These tariffs are paused temporarily to allow for negotiations, yet there is little progress with China.

China's response to increased U.S. tariffs includes imposing its own tariffs and restricting exports of essential materials, further straining economic relations. The IMF has lowered growth forecasts for both nations and globally, citing the tariffs' negative impact.

The Trump administration is prioritizing trade deals with 18 key partners but has not appointed a specific negotiator for China, complicating potential discussions. Treasury Secretary Bessent is expected to lead talks with China, while other trade discussions are overseen by Commerce Secretary Howard Lutnick.

China is cautious about engaging in talks with the U.S. due to differing negotiation styles and past confrontations during the Trump administration. The absence of structured dialogue channels, previously established during the Biden administration, has exacerbated the situation.

Experts suggest that the current trade deadlock may last longer than previous disputes due to higher tariffs and both sides' belief in their strategic advantage. There is a need for a symbolic gesture or an 'off-ramp' to initiate meaningful negotiations.

China is reportedly waiting to observe the outcomes of U.S. trade negotiations with other countries like India and Japan, which could influence its approach. The ongoing trade dispute has become a matter of national pride for China, while the Trump administration seeks a swift resolution to mitigate domestic economic impacts.

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