US and China Agree to Fresh Trade Talks Amid Tariff Tensions
The United States and China have agreed to hold a fresh round of trade talks “as soon as possible,” signaling a potential de-escalation following threats of new 100% tariffs from Washington.
Key Developments
- Both nations seek to avoid another cycle of damaging tariffs
- Trump calls proposed tariffs “not sustainable” but claims Beijing “forced him to do it”
- Chinese imports could face total 130% duty if new tariffs proceed
- Leaders’ meeting at APEC summit remains possible despite earlier doubts
Diplomatic Breakthrough
The decision for renewed negotiations followed a video call between Beijing’s chief negotiator, Vice Premier He Lifeng, and US Treasury Secretary Scott Bessent. State news agency Xinhua described the discussion as involving “candid, in-depth and constructive exchanges.”
Trump’s Tariff Position
Earlier on Friday, President Trump acknowledged his proposed additional tariffs on Chinese goods would not be sustainable. “It’s not sustainable,” Trump told Fox Business when asked if the levies could remain without significantly affecting the economy.
He maintained that Beijing “forced him to do it” following China’s restrictions on rare earth mineral exports.
Escalating Trade War
Tensions escalated after Trump announced plans to impose an additional 100% tariff on Chinese goods from November 1. With these additional tariffs, Chinese imports would face a total of 130% duty.
Washington’s move was in response to China’s restriction on its rare earth exports.
“Based on the fact that China has taken this unprecedented position… the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” Trump said on Truth Social.
China’s Response
Beijing warned of retaliation if the US proceeds with the tariff threat, accusing Washington of escalating tensions.
“Wilful threats of high tariffs are not the right way to get along with China,” a commerce ministry spokesperson said on Sunday, according to Xinhua.
Potential Leaders’ Meeting
Despite Trump’s earlier statement that he would not meet Xi at this month’s Asia-Pacific Economic Cooperation (APEC) summit, a meeting between the two leaders remains possible.
US Treasury Secretary Scott Bessent confirmed he continues to expect the meeting to take place. “He will be meeting with Party Chair Xi in Korea – I believe that meeting will still go ahead,” Bessent told Fox Business.
