Bessent says US not hurrying truce

Scott Bessent said on May 19 that the Trump administration is “not in a rush” to extend a tariff and critical minerals trade truce with China that runs through November. In an interview with Reuters on the sidelines of a Group of Seven finance meeting in Paris, the U.S. treasury secretary said there was still time to renew the arrangement later this year and added, “Things are stable.” Beijing is taking a different line. China said on May 20 that it wants to continue talks to extend the truce and is seeking a ceiling on any future U.S. Section 301 tariffs at the level agreed in Kuala Lumpur last October, according to Bloomberg and other reports surfaced in search results. China also confirmed plans to buy 200 Boeing aircraft, a commitment the White House and other outlets have described as part of the package discussed after last week’s Trump-Xi summit in Beijing. (finance.yahoo.com) ### Why is Washington not moving to extend the truce now? Bessent said the current arrangement does not need immediate action because the key deadline is still months away. He told Reuters that the November 2025 truce can be revisited in later meetings and said China would probably accept the restoration of earlier U.S. tariff rates through new Section 301 duties, as long as those duties do not go higher. (bloomberg.com) Paris was also where Bessent gave his clearest public assessment of Chinese compliance. He said China had been “satisfactory, but not excellent” in carrying out its side of the deal on critical minerals, adding, “So we’re seeing them again.” ### What exactly is China asking for? China is asking for continuity and limits at the same time. (finance.yahoo.com) Bloomberg reported that Beijing wants the truce extended and wants future U.S. tariffs capped at the level set under the Kuala Lumpur arrangement reached last year. Search results carrying Bloomberg’s reporting said China would accept some increase in U.S. tariffs, but not beyond that earlier benchmark. The Boeing order is part of that same negotiating backdrop. China’s commerce ministry said on May 20 that it would buy 200 Boeing jets while seeking an extension of the U.S. tariff pact, according to reports aggregated in search results. A White House fact sheet cited by Just Security said China had approved an initial purchase of 200 aircraft, while U.S. Trade Representative Jamieson Greer said the purchase was “locked in.” (bloomberg.com) ### What else is in the trade package besides tariffs? China’s commerce ministry said on May 20 that the two sides had agreed to cut tariffs on agricultural trade as part of a broader deal, though it did not spell out implementation details. Reuters reported that the statement echoed an earlier Chinese readout and did not mention the White House’s separate claim that China would buy $17 billion of U.S. farm goods a year. (money.usnews.com) Agriculture is tied to a broader mechanism for non-sensitive goods. Reuters reported on May 13 that Washington and Beijing were discussing a “Board of Trade” that would oversee roughly $30 billion of goods on each side where tariffs could be reduced without crossing national security lines. Bessent said on May 19 that bilateral managed trade, investment and artificial intelligence protocols were among the most important outcomes of the recent summit. (finance.yahoo.com) China’s May 20 statement also said it had re-certified U.S. beef company registrations, would resume poultry exports from some U.S. states affected by avian influenza restrictions, and would discuss agricultural biotechnology issues raised by Washington. Even Rogers Pay of Trivium China said the Chinese side would likely focus the initial tariff reductions on U.S. agricultural products. (usnews.com) ### Which dates and meetings matter next? September is the next named political milestone. Reuters reported that Xi Jinping is expected to travel to Washington to meet President Donald Trump at the White House, and Bessent said he would meet Vice Premier He Lifeng before that summit to work through more trade details. (finance.yahoo.com) November and December could bring additional leader-level contact. Reuters said Trump and Xi may also meet at the Asia-Pacific Economic Cooperation summit in China in November and at a Group of 20 leaders summit in Florida in December, while the current truce remains due to expire in November. (finance.yahoo.com)