US and China to Resume Trade Talks
Top trade officials from the U.S. and China are set to meet in mid-March, ahead of a potential Trump-Xi summit. The talks come as the U.S. Trade Representative aims for a "better China balance" and seeks to address the high cost of legacy tariffs on American firms.
The upcoming Paris meeting will involve U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, who will meet with China's Vice-Premier He Lifeng. These officials have a history of negotiations, including a series of talks launched in Geneva last year that resulted in a temporary truce and lowered some tariffs. On the agenda are potential Chinese acquisitions of Boeing aircraft and commitments to purchase U.S. soybeans. The talks may also address the future of U.S. tariffs aimed at fentanyl, which were recently struck down by the Supreme Court. This trade conflict dates back to 2018, leading to significant tariff escalations. At its peak, the U.S. imposed tariffs as high as 145% on certain Chinese goods, prompting retaliatory tariffs from China of up to 125%. The tariffs have resulted in higher prices and reduced availability of goods for American businesses and consumers, leading to lower income and economic output. Studies have shown that these import duties translate to an increased tax burden for the average U.S. household. A recent Supreme Court ruling in February 2026 invalidated tariffs the Trump administration had implemented under the International Emergency Economic Powers Act, creating a new legal landscape for the negotiators. The administration's 2026 Trade Policy Agenda explicitly lists managing trade with China for "reciprocity and balance" as a top priority. This goal follows a period where the U.S. goods trade deficit with China fell, and for the first time since 2000, China was no longer the trading partner with which the U.S. had its largest deficit.
