The US-China tariff truce period is set to end in November, and if no agreement is reached by then, reciprocal tariffs will come into effect. US Treasury Secretary Scott Bessent expressed optimism on Tuesday (September 16) that a trade agreement with China could be reached before the deadline.
Bessent stated in an interview with CNBC on Tuesday that he expects further US-China negotiations to take place before the deadline.
“We will meet again,” he said on the “Squawk Box” program. “Each negotiation is becoming more and more effective. I believe the Chinese side now realizes that reaching a trade agreement is possible.”
Bessent and US Trade Representative Jamieson Greer held two days of talks with the team led by Chinese Vice Premier He Lifeng on Sunday (September 14) and Monday. This marks the fourth round of talks between the US and China since President Trump announced global reciprocal tariffs in April this year, aiming to address the tense trade relationship and the looming TikTok divestment deadline.
The initial truce period for reciprocal tariffs was set to expire on August 12, but President Trump extended the ceasefire until November 10.
Bessent mentioned on Tuesday that other US trading partners have informed him that “Chinese goods are flooding their markets, and they don’t know what to do. The influx of these goods is making them a little frustrated.”
In 2024, the US trade deficit with China was close to $300 billion. In 2025, this figure is expected to decrease significantly, reaching $128 billion as of July this year.
Bessent noted that US Trade Representative Jamieson Greer expects the deficit to “shrink by at least 30% this year, and further reductions may occur in 2026.”
“Therefore, our goal is to achieve balance and fair trade,” he remarked.