Bessent and He Lifeng start Seoul talks to prepare for Trump-Xi trade summit
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng kicked off high-level talks in Seoul on Wednesday, setting the stage for an upcoming summit between President Donald Trump and Chinese President Xi Jinping in Beijing. These discussions aim to ease longstanding trade tensions between the world's two largest economies, which have been marked by steep tariffs and retaliatory measures since 2018. According to reports from Asharq Al-Awsat, the Seoul meeting focuses on paving the way for concrete agreements, potentially reviving key areas of bilateral trade.
The broader context of US-China trade relations reveals a volatile history. Tariffs on Chinese goods entering the US peaked at 145 percent by April 2025, with China responding by imposing 125 percent duties on American imports. While a partial truce in May of the previous year reduced US tariffs to 30 percent and Chinese ones to 10 percent, many levies remain in place despite a February 2026 US Supreme Court ruling that overturned some of Trump's proposed measures. The US continues to maintain high tariffs on critical sectors like electric vehicles (100 percent under Biden-era policies), steel, aluminum, semiconductors, solar cells, and lithium batteries, alongside export controls on advanced technology to curb China's military advancements.
A central goal of the impending Trump-Xi summit is to address the US's persistent $202 billion goods trade deficit with China—the largest with any single country—as noted by the Council on Foreign Relations. US officials are pushing for deals to boost American energy exports to China, which could provide a significant lifeline for US producers amid global supply chain disruptions. Accompanying President Trump is a delegation of US CEOs from major companies, primarily seeking resolutions to outstanding trade barriers, investment restrictions, and market access issues, as reported by Asharq Al-Awsat. This business-focused approach underscores hopes for economic wins, including increased purchases of US products like Boeing aircraft, beef, soybeans, and energy resources.
Trump's administration has emphasized separating economic cooperation from security concerns, proposing initiatives like a formalized Board of Trade and Board of Investment to manage future agreements. Recent deputy-level meetings in Paris and confirmed ministerial talks have built momentum, with both sides signaling willingness to stabilize trade flows. For China, reopening US markets is crucial to counter its economic slowdown and redirect exports currently flooding Europe and Southeast Asia.
These developments matter profoundly for global markets, supply chains, and consumers worldwide. Reduced tariffs could lower prices on electronics, vehicles, and raw materials, while boosting US manufacturing and agricultural exports. However, challenges persist, including intellectual property disputes, forced technology transfers, and geopolitical flashpoints like Taiwan and the ongoing US-Israel conflict with Iran, which delayed an earlier Trump-Xi meeting from March to May. US goods imports from China fell 29.7 percent to $308.4 billion in 2025, highlighting the war's toll, yet both nations recognize mutual dependencies—China needs US demand, and America relies on affordable Chinese components.
Looking ahead, the Trump-Xi summit this week in Beijing represents a pivotal moment. Success could lead to a "phase two" deal building on the limited 2020 phase one agreement, which promised but largely failed to deliver $180 billion in annual US goods purchases by China. Failure, however, risks renewed escalation, further diverting trade to other regions like Mexico and Europe, as past tariffs have done. With the world watching, these talks could reshape the rules of global trade for years to come.