Bessent: Trump Admin. is not in a hurry to extend China trade truce due to expire in Nov
- Trump administration not in a hurry to extend China trade truce due to expire in November
- U.S.-China truce on critical minerals and tariff rates can be extended through subsequent meetings this year
- New Section 301 tariffs would not be a problem for China as long as they do not exceed prior agreed levels from November
- U.S.-China board of investment protocol will seek to identify deals that would not need CFIUS national security reviews or investment restrictions
- China understands Section 301 trade investigations may bring U.S. tariffs back to levels prior to Supreme Court decision to annul some duties
- Trump will meet with Chinese Vice Premier He Lifeng prior to Xi’s September White House visit to work out more details on trade arrangements
- U.S.-China consultations on AI guardrails to prevent proliferation of powerful models likely to start in the next four to eight weeks
- U.S. and China will initially identify $30 billion of non-critical goods that can have reduced or no tariffs under board of trade protocol
The comments suggest the U.S. and China are trying to build a more stable and structured trade relationship ahead of the November truce deadline. Markets are likely to view the headlines as modestly risk-positive because both sides appear focused on avoiding a sharp escalation in tariffs while selectively reducing duties on some non-critical goods.
The remarks also show trade talks are expanding beyond tariffs into investment rules, critical minerals, and AI cooperation. The administration still appears willing to keep pressure on China in strategic areas, but the overall tone points toward managed competition rather than a full economic decoupling.
As background information on Section 301:
Section 301 refers to a part of the U.S. Trade Act of 1974 that gives the president authority to impose tariffs or other trade restrictions on countries deemed to be engaging in unfair trade practices. It has been the main legal tool used by both the Trump and Biden administrations to place tariffs on hundreds of billions of dollars of Chinese imports.
Under Section 301, the U.S. Trade Representative (USTR) investigates whether another country is:
- unfairly subsidizing industries
- stealing intellectual property
- forcing technology transfers
- discriminating against U.S. companies
- using trade practices that harm U.S. businesses
If the investigation finds violations, the president can respond with tariffs, import restrictions, or other penalties.
Trump used Section 301 during his first term to impose tariffs on a wide range of Chinese goods, including electronics, machinery, industrial products, and consumer items. Those tariffs generated significant customs revenue for the U.S. government because importers pay the duties when goods enter the country. The cost is often passed along through supply chains to businesses and consumers.
The recent comments suggest Trump could use new Section 301 investigations as a legal pathway to reimpose or increase tariffs if negotiations with China deteriorate or if courts limit other tariff authorities. In practice, it would allow the administration to:
- launch investigations into Chinese trade practices
- formally justify new tariffs under U.S. law
- collect duties at ports of entry through U.S. Customs
- pressure China while maintaining leverage in negotiations
Markets pay close attention to Section 301 because it is one of the strongest and most flexible trade enforcement tools available to a U.S. president.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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