Trade talks between America and China have stalled, says US Treasury Secretary

US Treasury Secretary, Scott Bessent has said that the ongoing trade talks between America and China have come to a halt. He also indicated that US President Donald Trump may have a telephonic conversation with Chinese President Xi Jinping in the coming weeks.

After the start of trade talks between the two countries, both of them had reduced tariffs on each other’s goods to 10% for 90 days.

This pause in trade talks  follows the recent announcement by US Government that Chinese students living in US and coming to US will face tighter scrutiny.

US Court of International trade had ruled day-before-yesterday that the power to impose tariffs rests with the US Congress and not with the US President. But a Federal Appeals Court put a temporary stay on that order, yesterday.

A dampener of sentiments in US markets today

The cessation in talks between the two countries will act as a dampener for sentiments in US markets today. They are therefore likely to see some selling pressure. Given the large imports from China into USA, higher import duties on Chinese goods may significantly increase inflation in the country. US Federal Reserve has already warned of the risk of stagflation that is there. Stagflation means a country having high inflation rate and high unemployment rate at the same time.

Disclaimer: This content is only for informational purpose. It does not make any recommendation to act or invest. Any error of oversight or omission is regretted. Please write to us for getting errors corrected.

Source: US Treasury Secretary