A Harvard scholar has suggested that the United States and China are on the verge of finalizing a trade deal, with the potential for an agreement as soon as next week.
What Happened: Graham Allison, the founding dean of Harvard University‘s John F. Kennedy School of Government and a former U.S. official, hinted at the possibility of a trade deal between the U.S. and China. He made these remarks at a World Economic Forum (WEF) meeting in Tianjin on Thursday, reported the South China Morning Post.
Allison stated, “I would be surprised if in the next week or so we do not see an MOU (memorandum of understanding) coming out of the discussions that have been going on between Bessent and He and their teams in the intermediate period,” referring to U.S. Treasury Secretary Scott Bessent and China's Vice-Premier He Lifeng, who are leading the trade talks.
Allison shared his perspective on the trade talks following a recent meeting with China's top diplomat, Wang Yi, who voiced optimism about achieving peaceful coexistence between the two countries.
"These are business problems that serious businesspeople know how to solve. And I'm thinking they are going to stabilize this, I believe. But we'll see," stated Allison
Why It Matters: The ongoing trade war between the US and China has had significant impacts on both economies. U.S.-listed Chinese stocks such as Alibaba Group Holding (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and JD.Com, Inc. (NASDAQ:JD) rallied after experiencing a downturn earlier this month following President Donald Trump’s confirmation of a framework finalization for China trade deal.
Furthermore, the tariffs imposed by the Trump administration have led to a surge in toy prices in the U.S. The price of games and playground equipment saw a record 2.2% increase between April and May 2025, a rate significantly higher than the overall inflation rate, as close to 75% sellers in the U.S. import toys from China
The potential trade agreement could alleviate these economic pressures, marking a significant step towards economic stability for both nations.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.