U.S.-China Trade Talks End Without Clear
Agreement
The latest round of U.S.-China trade negotiations ended yesterday without a
final agreement on extending the current tariff truce, according to U.S.
Treasury Secretary Scott Basset. While China’s negotiator suggested that a deal
had been reached to prolong the ninety-day pause expiring August 12, Basset
said the claim was premature.
President Donald Trump, who is expected to
decide on the next steps, announced a separate 25% tariff on Indian goods
today, signaling an aggressive trade stance.
·
Tariff Status:
o The
U.S. currently maintains tariffs of 145% on Chinese imports, with China
responding at 125%.
o A
possible ninety-day extension to the tariff pause remains under consideration.
·
Trade
Policy:
o Washington
has partially relaxed chip export controls to China while pursuing a broader
trade deal.
o The
White House emphasized objectives of protecting American industries and curbing
fentanyl trafficking.
·
Economic
Outlook:
o The
IMF raised its 2025 global growth forecast to 3% (from 2.8%), crediting factors like a weaker dollar.
o Despite
the upgrade, growth remains below pre-pandemic averages, and tariffs are
expected to fuel U.S. inflation in the second half of the year.
Timeline of Recent U.S.-China Trade Tensions & Related Events
Earlier in 2025
·
Q1
2025:
o Tariff escalation:
Washington raised tariffs on Chinese goods to 145%, prompting Beijing to retaliate with 125% tariffs.
o Economic strain: Global markets reacted with volatility; inflation pressures in the U.S. began rising.
May 2025
· Chip export controls eased: The Trump administration relaxed some restrictions on U.S. chip exports to China to facilitate negotiations.
June 2025
·
Ninety-day
tariff pause begins:
o Both countries agreed to a temporary truce, halting new tariff hikes until August 12, 2025, to allow room for negotiations.
July 29, 2025
·
Constructive
but inconclusive talks:
o U.S.
Treasury Secretary Scott Basset described the latest talks as “constructive”
but said no deal was finalized.
o China’s
negotiator prematurely announced an agreement to extend the pause.
·
Trump
briefed on negotiations:
o President
Donald Trump was set to review outcomes of the trade talks.
·
Tariffs on India:
o Trump
announced a 25% tariff
on Indian imports, citing national interest and trade imbalances.
·
IMF
Forecast:
o The
IMF upgraded the global growth forecast to 3% for 2025, but warned
tariffs will continue to hurt economies and stoke U.S. inflation.