U.S. Treasury Secretary Scott Bessent testified before Congress on May 6, confirming that the United States has not begun formal trade negotiations with China, despite ongoing discussions with nearly all other major trading partners. Bessent’s remarks come as both nations maintain record-high tariffs and as market uncertainty increases due to conflicting statements from top U.S. officials.
Bessent Confirms Absence of Talks with China
During his testimony to the House Appropriations Committee, Secretary Bessent stated unequivocally, “China, we have not engaged in negotiations with as of yet.” He noted that the U.S. is actively negotiating with 17 out of its 18 top trading partners, but China remains the exception [2][3]. Bessent’s comments directly challenge President Trump’s multiple public claims that talks with Beijing are underway.
Escalating Tariffs and Their Impact
As the trade standoff persists, both countries are imposing some of the highest tariffs in recent history: the U.S. has set tariffs at 145% on Chinese goods, while China has responded with a 125% tariff on U.S. imports [2][3]. Bessent warned lawmakers that these measures could soon impact U.S. prices, supply chains, and stock markets. He also reiterated that the onus is on China to move first in reducing tariffs, stating, “They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They're unsustainable for them” [3].
Contradictory Signals from the Administration
Bessent’s testimony stands in clear contrast to President Trump’s repeated assertions that negotiations with China are underway. The Treasury Secretary characterized shifting tariff levels as part of the administration’s negotiation strategy, but confirmed that no direct talks with China have been initiated [2][3]. Democratic lawmakers also used the hearing to challenge the administration’s messaging that tariffs are a tax solely on foreign countries [2].
Broader Trade Negotiations Continue
While discussions with China remain stalled, the Trump administration is moving forward with trade negotiations involving nearly all other major trading partners. Bessent indicated that major trade deals with other countries could be announced soon, although China’s absence remains notable [2][3].
Analysis
The sustained absence of formal U.S.-China trade negotiations amid escalating tariffs is fueling uncertainty for businesses on both sides of the Pacific. With tariffs at unprecedented levels, immediate effects are expected in the form of increased costs for U.S. importers and potential disruptions in supply chains and financial markets. Bessent’s testimony offers rare clarity on the administration’s position, but also exposes internal inconsistencies in public statements from senior officials. Expert opinions, including those from Bessent, suggest the current trade stance is not sustainable for either country in the long term [2][3].
Outlook
The lack of progress on U.S.-China trade talks is likely to maintain market and business uncertainty in the coming weeks. While Bessent’s upcoming meeting with a Chinese economic representative in Switzerland could provide an opportunity for initial dialogue, no formal negotiations have been confirmed [1]. Businesses may continue to face volatility and delayed investment decisions until there is greater clarity about the direction of U.S.-China trade policy.