U.S.–China Trade and Tariffs

The Treasury Department says U.S. Treasury Secretary Scott Bessent will meet Chinese Vice Premier He Lifeng in Paris on Sunday and Monday for what analysts call the most important bilateral talks before President Donald Trump’s planned March 31 state visit to Beijing, the first by a U.S. president to China since 2017. The meetings are framed as preparatory work to stabilize relations between the world’s two largest economies and to explore concrete deals, such as expanded Chinese purchases of U.S. goods like soybeans and airplanes and ways to manage the trade imbalance. Bessent publicly credited what he called the “bonds of mutual respect” between Trump and Chinese President Xi Jinping and vowed to “deliver results that put America’s farmers, workers, and businesses first,” while Beijing confirmed He’s trip and said the agenda will focus on “trade and economic issues of mutual concern.” At the same time, China’s Commerce Ministry blasted the Trump administration’s new trade investigation into 16 partners, including China, warning it could “seriously undermine the international economic and trade order” and vowing to take “all necessary measures” to defend its interests if it leads to fresh tariffs after the Supreme Court struck down Trump’s earlier global tariff regime. The Paris talks follow a Busan meeting five months ago where Trump and Xi agreed to a one‑year truce in a trade war that briefly drove tit‑for‑tat tariffs into triple‑digit territory, so business groups and markets will be watching closely for signs of whether this visit produces real de‑escalation or just another cease‑fire before the next round of tariff brinkmanship.

China’s customs agency reports that exports surged nearly 22 percent in January–February 2026 from a year earlier, far above expectations, even as shipments to the United States fell 11 percent under Trump‑era tariffs. The growth is being driven by a roughly 73 percent jump in semiconductor exports by value, a 67 percent rise in auto exports, and a 27 percent increase in mechanical and electrical goods, much of it going to the European Union, Latin America and other Asian markets. Economists say a U.S. Supreme Court ruling that narrowed Trump’s sweeping tariffs has already trimmed some duties on Chinese goods, helping keep overall exports robust despite weaker direct trade with America. China’s imports also rose about 20 percent over the same period, but imports from the U.S. dropped nearly 27 percent, underscoring a widening bilateral imbalance even as China’s global surplus for the two months hit $213.6 billion. Analysts warn that the Iran war and effective blockade of the Strait of Hormuz could drive up oil prices, feeding global inflation and ultimately eroding foreign demand for Chinese exports, with knock‑on effects for U.S. energy costs and supply chains.