U.S.-China deal and a possible extension for tariff negotiations: an Expert's comment

Wendy Cutler, Vice President of the Asia Society Policy Institute (ASPI) and former Deputy U.S. Trade Representative, comments on a possible extension to tariff negotiations, as well as the U.S.-China tade deal. Secretary Bessent’s comment suggesting Labor Day is the target to get the trade deals done most probably reflects the reality that more time will be needed with certain partners to wrap up the talks. But, if the deals resemble the UK deal and anticipate another stage of talks, this exercise could go on well through the calendar year and beyond.

The new China deal appears to provide the level of detail needed to ensure that the six-week old Geneva agreement is actually implemented. It’s a deal to clear up misunderstandings that have haunted the Geneva accord rather than one that addresses other pressing bilateral economic disputes, including Chinese excess capacity. It’s welcome news that Chinese critical minerals and magnets will again flow to the U.S, but it still remains unclear what the Administration offered in return.

To the extent the U.S. rolled back export controls, this will have a profound impact on future U.S.-China trade talks, with Beijing feeling emboldened to ask for more.