Trump and Xi on Verge of Trade Deal: Tariff Threats Averted
President Donald Trump and Chinese Premier Xi Jinping are on the verge of striking a deal to prevent the imposition of 100% tariffs on Chinese goods, according to Treasury Secretary Scott Bessent. Following productive talks with China's top trade negotiator, Bessent revealed that China is prepared to make a deal after two days of negotiations. A framework has been established for a meeting between Trump and Xi to avoid the severe tariffs threatened by Trump in response to Beijing's potential restrictions on rare earth minerals.
Bessent expressed optimism about securing a deferral on China's rare earth export controls and highlighted the negotiating leverage provided by Trump's tariff threats. Trump's current visit to Malaysia marks the beginning of a five-day Asia tour that is anticipated to culminate in a face-to-face meeting with Xi in South Korea on October 30. Additionally, plans are in place for Trump to visit Xi in Beijing early next year, preceding the Lunar New Year celebrations.
The upcoming discussions between Trump and Xi are expected to address various issues, including the fentanyl crisis and potential agricultural purchases by China to support American farmers. China's top trade negotiator, Li Chenggang, confirmed that preliminary consensus has been reached on extending the trade truce, addressing fentanyl concerns, and discussing export controls. The ongoing negotiations between the U.S. and China aim to establish a mutually beneficial agreement that will benefit both countries economically and diplomatically.