Progress made in U.S.-China trade negotiations, however, specifics continue to remain fuzzy
The latest chapter in the ongoing US-China trade saga unfolded on May 11, with the announcement of significant progress in the negotiations. According to a joint statement, key figures including Secretary of the Treasury Scott Bessent, U.S. Trade Representative Jamieson Greer, and China's Vice Premier, along with two vice ministers, have been instrumental in these discussions.
The White House confirmed that trade talks between the United States and China have advanced substantially. Secretary Bessent stated that the talks were productive, while Ambassador Greer added that the differences between the two countries were not as large as initially thought.
In a notable move, President Donald Trump has chosen to extend the suspension of heightened US tariffs on Chinese imports until November 10, 2025. This executive order, signed on August 11, 2025, aims to facilitate productive negotiations addressing trade imbalances, unfair practices, market access, and national security concerns between the two nations.
While the heightened tariffs remain suspended, a reciprocal 10% tariff on Chinese imports continues to apply as a baseline to protect American workers and domestic production. Other tariff measures on China remain in place.
This development reflects ongoing efforts to improve trade reciprocity, tackle the persistent trade deficit, and support the domestic economy and defense industrial base. The US government frames this approach as balancing fair trade and national security interests while keeping trade talks active.
The suspension of additional tariffs may reduce immediate trade-related market uncertainty, easing volatility by signaling a relatively stable short-term trade environment. However, the retention of a 10% reciprocal tariff and other measures means trade frictions and risks remain, maintaining some baseline level of uncertainty.
Market participants view the continued talks and tariff suspensions as cautiously positive but remain alert to any abrupt policy shifts or stalemates, which could quickly increase volatility. Overall, the trade policy stance signals a willingness for negotiation without fully removing trade barriers, suggesting moderate but not eliminated market volatility related to US-China trade issues at this time.
As the trade policy unfolds, global markets are watching closely for developments in the negotiations. The coming weeks will be critical in determining whether recent developments signal meaningful progress or merely reflect another shift in tone. A formal briefing is scheduled for tomorrow morning.
In April, President Trump indicated a possible rollback of tariffs on Chinese imports, but no concrete plans have been announced yet. The US currently has a trade deficit of $1.2 trillion, and there has been no mention of temporary tariff exemptions to aid carmakers or a plan to boost a Bitcoin reserve using tariff funds.
In a positive move, exemptions for select tech products, including smartphones, processors, and computers, were announced by U.S. Customs and Border Protection in April 2024. However, the proposal was reportedly met with doubt in Beijing, where officials appeared unconvinced.
Online reactions in China framed the move as a strategic retreat by Washington, highlighting the complex and sensitive nature of these negotiations. The durability of any potential breakthrough will likely depend on sustained dialogue and tangible policy commitments from both sides.
[1] White House Press Release, "Progress in US-China Trade Talks," May 11, 2025. [2] U.S. Trade Representative's Office, "Statement on US-China Trade Talks," May 11, 2025. [3] Executive Order 14087, "Suspension of Heightened Tariffs on Chinese Imports," August 11, 2025.
- As the US-China trade talks advance and the White House extends the suspension of heightened tariffs on Chinese imports, discussions on policy-and-legislation, specifically addressing trade imbalances, unfair practices, market access, and national security concerns, continue to be a primary focus of politics, as evidenced by the joint statement and the White House press release.
- Despite the suspension of additional tariffs, the retention of a 10% reciprocal tariff and other measures means that war-and-conflicts and general-news regarding trade frictions and risks between the two nations remain a significant aspect of global news, with market participants staying alert for any abrupt policy shifts that could increase volatility.
