Global Economy News
LAST UPDATE: May 30, 2025
Bessent Says US-China Talks ‘Stalled,’ Pushes for Trump-Xi Call
U.S. Treasury Secretary Scott Bessent stated that trade negotiations with China have stalled, suggesting a direct conversation between Presidents Trump and Xi is necessary to advance talks.
Insight
The stagnation in U.S.-China trade discussions highlights the complexities of resolving deep-seated economic and geopolitical issues. Bessent’s call for a leader-level dialogue indicates that technical negotiations may have reached their limits. A direct Trump-Xi engagement could break the impasse, but it also carries risks if expectations are not met. The situation underscores the importance of high-level diplomacy in managing major bilateral relationships. Additionally, the stalled talks may prompt both countries to explore alternative strategies, including strengthening ties with other trading partners, which could reshape global trade dynamics.
Tariff Truce Keeps China-US Trade Flowing Across the Pacific
A recent tariff truce between the U.S. and China has maintained trade flows across the Pacific, with a notable number of vessels departing Chinese ports for the U.S. in the past 15 days.
Insight
The temporary easing of tariffs has provided relief to businesses reliant on trans-Pacific trade, stabilizing supply chains and reducing costs. However, the decrease in the number of vessels and container volumes suggests lingering uncertainties and cautious optimism among traders. Companies may be hedging against potential policy reversals by diversifying supply sources or adjusting inventory strategies. The situation emphasizes the need for clear and consistent trade policies to foster long-term business confidence and investment. Ongoing monitoring of trade patterns will be essential to assess the durability of the truce’s positive effects.
