US Treasury Secretary indicates President Trump might reconsider the proposed 100% tariff on China as trade discussions progress.
Despite renewed trade frictions, the scheduled meeting between US President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this October remains on track, according to US Treasury Secretary Scott Bessent.
In an interview with Fox Business Network on Monday, Bessent highlighted that tensions between the US and China have notably eased following a series of retaliatory trade actions that risked escalating into a full-blown trade conflict.
These remarks followed President Trump’s announcement of an additional 100% tariff on Chinese imports, set to begin November 1, a response to China’s October 9 move to tighten export controls on vital rare earth minerals.
However, Bessent noted that since then, there has been significant dialogue between the two nations, with further staff-level negotiations anticipated this week.
“Despite last week’s tariff announcement, the relationship remains constructive. Communication channels have reopened, so we’ll monitor how discussions evolve,” Bessent explained, emphasizing that the 100% tariff could be averted if both parties reach a mutual understanding through talks.
He reaffirmed expectations that the Trump-Xi meeting at the upcoming APEC forum will proceed as planned. “President Trump is scheduled to meet with Communist Party Chairman Xi in Korea, and I am confident this meeting will take place,” Bessent stated.
Highlighting the strong rapport between the two leaders, Bessent suggested that China’s recent rare earth export policy might have been implemented by lower-tier officials rather than directly by Xi.
This perspective aligns with Trump’s more conciliatory tone expressed the previous day, where he reassured the public about the stability of US-China relations.
“No need to worry about China; everything will be fine!” Trump posted on Truth Social. “President Xi, a highly respected leader, just had a momentary lapse. Neither he nor I want economic downturns for our countries. The US aims to support China, not harm it!”
Trump’s softened stance helped calm Wall Street nerves, triggering a robust recovery in US stock markets on Monday morning after the tariff announcement had caused a sharp sell-off on Friday.
A Forceful Response
Despite the thaw, Bessent criticized China’s new export restrictions as a provocative move, asserting that the US responded firmly.
“China has effectively aimed a powerful weapon at the global supply chains and the industrial foundation of the free world,” Bessent remarked. “We will not accept such tactics. China operates a command economy, but they will neither dictate nor dominate us.”
He also mentioned ongoing consultations with international partners, anticipating backing from European nations, India, and allies across Asia.
China defends its tightened export regulations, which mandate foreign companies to obtain government approval before exporting products containing Chinese rare earth elements and to disclose their intended applications.
The Chinese Ministry of Commerce stated these measures were a reaction to a series of US actions since the recent trade discussions in Madrid, including blacklisting Chinese companies and imposing port fees on vessels linked to China.
Beijing condemned Washington’s moves as “provocative and harmful,” labeling Trump’s tariff threat as a “classic case of double standards.”
China holds a near-exclusive control over rare earth minerals, essential components in manufacturing technologies such as electric vehicles, smartphones, semiconductors, and military equipment.
The United States relies heavily on Chinese rare earths, which are vital to its defense sector.
