US and China Stabilize Tariffs Amid Forced Labor Probes

The United States and China reached a preliminary agreement to maintain current bilateral tariff levels following high-level consultations in Paris from March 15 to 16, 2026. Led by Scott Bessent and Chinese Vice Premier He Lifeng, the delegations established a work plan for a scheduled summit between President Donald Trump and President Xi Jinping in Beijing from March 31 to April 2. Both nations explored creating new cooperation mechanisms, potentially including a US-China Board of Trade and a Board of Investment, to manage economic relations and reduce market barriers.

Despite the constructive tone, frictions remain over the Trump administration's recent trade actions. The U.S. Trade Representative initiated Section 301 investigations into 60 trading partners regarding forced labor and separate probes into 16 economies concerning industrial overcapacity. These moves follow a U.S. Supreme Court ruling that invalidated previous emergency tariffs, leading the administration to implement a 10 percent global import surcharge under the Trade Act of 1974. China's Ministry of Commerce condemned these probes as "arbitrary and discriminatory" and urged the removal of unilateral restrictive measures.

Geopolitical tensions further complicate the relationship. President Donald Trump suggested the Beijing summit could be postponed to pressure China into assisting with a U.S. naval mission to reopen the Strait of Hormuz, which was closed during the Iran War. However, Secretary Bessent clarified that any delay would be based on the president's duties as commander in chief rather than as a pressure tactic against Beijing.