U.S. Treasury secretary says administration 'not in a rush' to extend pandemic-treaty talks

Scott Bessent said on May 19 that the Trump administration is “not in a rush” to extend a U.S.-China tariff and critical-minerals truce that expires in November. Bessent told Reuters in Paris, on the sidelines of a Group of Seven finance meeting, that there was still time to revisit the arrangement later this year. Beijing signaled a different emphasis a day later, saying it would keep negotiating to extend the pact and confirming a purchase of 200 Boeing aircraft. The split in tone left the current framework in place while both sides continued talks on tariffs, aircraft and critical-minerals supply. ### Why did Bessent say the administration is not rushing? Scott Bessent said on Tuesday that Washington did not need to move immediately because the truce does not expire until November. Reuters reported that Bessent, speaking after last week’s summit in Beijing, said the agreement could be renewed in meetings later this year. He also said he believed China would accept a restoration of prior U.S. tariff rates through new Section 301 duties as long as those duties did not go above earlier levels. (ca.finance.yahoo.com) Paris was the setting for Bessent’s remarks, which came as finance officials gathered for the G7 meeting. His comments followed a Beijing summit between President Donald Trump and President Xi Jinping that was aimed at stabilizing ties. Reuters reported separately on May 20 that U.N. Secretary-General António Guterres said that summit produced “no major breakthroughs.” (ca.finance.yahoo.com) ### What is China offering while asking for more time? China’s Commerce Ministry said on May 20 that Beijing would buy 200 Boeing jets and seek an extension of the trade truce reached with the United States. Reuters reported that the ministry tied the aircraft purchase to broader efforts to stabilize bilateral ties after the Trump-Xi meeting. The ministry also said the United States would provide China with supply guarantees for aircraft engine parts and components under the Boeing arrangement. (ca.finance.yahoo.com) Bloomberg reported that China was willing to continue talks to extend the truce and would accept some increase in U.S. tariffs up to a level agreed previously. That report said Beijing set a ceiling around the tariff terms discussed under last year’s arrangement and presented its position as part of continuing negotiations rather than a final settlement. (money.usnews.com) ### What are negotiators discussing beyond the headline truce? A separate report on May 20 said U.S. and Chinese officials were weighing matching tariff cuts on at least $30 billion of goods. Bloomingbit, citing the discussions, said the two sides planned to use a trade committee to review equivalent tariff reductions and possible application of most-favored-nation rates or lower tariffs on some items. The same report said rare earths and other critical minerals were part of the agenda. (bloomberg.com) Reuters reported on May 13 that the two governments were expected to identify roughly $30 billion of non-sensitive goods on each side for potential tariff relief. That earlier report described the talks as a managed-trade mechanism focused on goods that did not cross national-security red lines. (en.bloomingbit.io) ### Why do Boeing and rare earths matter in the same negotiation? Boeing is one of the clearest commercial symbols in the current talks because aircraft orders can be announced immediately and quantified precisely. China’s 200-plane purchase gives Beijing a visible concession to point to while trade teams continue working through tariff and supply-chain issues. Reuters and other reports said the package also covered aircraft engine parts, adding an industrial-supply component to the aircraft order. (usnews.com) Rare earths and critical minerals matter because they sit closer to the national-security boundary that has complicated broader trade talks. The Bloomingbit report said export controls on rare earths and other critical minerals were now on the agenda, indicating that negotiators are trying to address supply issues alongside tariff levels. ### What happens before November? (money.usnews.com) November is the next fixed date in the dispute because that is when the current truce expires. China’s Commerce Ministry said trade teams from both countries would continue discussing an extension, while Bessent said the United States could revisit the issue in later meetings this year. The next steps, based on the reports published on May 19 and May 20, are continued talks over Section 301 tariff levels, possible matching cuts on $30 billion or more of goods, and critical-minerals issues before the November deadline. (en.bloomingbit.io) (ca.finance.yahoo.com)