US Treasury Secretary Scott Bessent said on Tuesday (August 12) that US trade negotiators will meet with Chinese representatives in the next two to three months to discuss the future economic direction of the two countries. Bessent emphasized that the US will not consider lowering existing tariffs on China unless substantial progress is seen from the Chinese side in preventing the flow of fentanyl-related goods over the course of months, quarters, or a whole year.
The day before Bessent’s remarks, President Trump signed an executive order to further delay the additional tariffs on China that were set to take effect on Tuesday by another 90 days, allowing both sides to avoid imposing triple-digit tariffs on each other’s goods.
During an interview with Fox Business, Bessent disclosed that Chinese President Xi Jinping has invited Trump to meet but a specific time has not been confirmed. He said, “There is no date set yet, the President has not accepted the invitation.”
Trump told CNBC in early August that the US and China are very close to reaching a trade agreement, and if a deal is reached, he plans to meet with Xi Jinping before the end of this year. When discussing tariff details on Fox Business, Bessent pointed out that the US must see substantial progress from China in preventing the flow of fentanyl for “months, quarters, or even a whole year” before considering a tariff reduction.
Washington continues to criticize Beijing for not effectively stopping the influx of chemicals used in fentanyl production into the US. Data shows that fentanyl is one of the main causes of drug overdose deaths in the US. In response, Beijing defends its anti-drug efforts and accuses Washington of using the fentanyl issue to “extort” China.
In February, Trump imposed a 20% tariff on Chinese goods due to the fentanyl issue. Despite the US-China trade truce agreement reached in May in Geneva, the tariff remains in effect, with an additional 10% basic tariff imposed on Chinese products.