U.S. Treasury Secretary Scott Biesent stated that trade negotiations with China are "facing some difficulties," suggesting the two countries' leaders may need to intervene.

In a Thursday interview with Fox News, Biesent remarked:

• "I can say [the trade talks with China] are facing some difficulties."

• "We expect to hold more discussions with them in the coming weeks."

• A presidential phone call might occur "at some point," given the talks' "scale and complexity."

Background:

• The world's two largest economies reached a temporary truce in Switzerland (May 12) after April's tariff escalations

• Both sides rolled back recent tariff hikes exceeding 100% for 90 days (until mid-August)

• Washington maintained tech restrictions; Beijing kept rare earth metals export limits

• Last Trump-Xi call occurred in January before Trump's second-term inauguration