New Delhi: The United States and China have made headway on several contentious issues as part of a trade agreement ahead of the highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping later this week. US Treasury Secretary Scott Bessent confirmed that Trump’s earlier warning of imposing 100% tariffs on Chinese goods “is effectively off the table,” indicating a significant de-escalation in trade tensions between Washington and Beijing.
A senior Chinese official told Bloomberg that both sides had reached an initial understanding on key matters, including export controls, fentanyl, and shipping charges. The progress marks a notable shift from recent weeks when China’s export restrictions and Trump’s counter-threats reignited fears of another trade war.
Bessent signals trade thaw
In an interview with CBS News, Bessent said, “We had a very good two-day meeting. I would believe that the—so it would be an extra 100% from where we are now, and I believe that is effectively off the table. I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
Trump’s proposed tariffs were a response to China’s move to tighten export controls on rare earth materials, which are critical for industries such as electronics and defence. Bessent said the upcoming deal between Trump and Xi would extend the current tariff truce, resolve disputes linked to the sale of TikTok, and secure the supply of rare earth magnets vital to global manufacturing.
China to increase US soybean purchases
Bessent also revealed that Beijing had agreed to make “substantial” purchases of American soybeans after discussions with Chinese officials. If confirmed, the move would bring relief to US farmers struggling after China, their biggest customer, reduced imports this season. Soybean imports have been a key bargaining tool for Beijing during trade negotiations. Trump’s meeting with Xi will be their first face-to-face engagement since Trump’s return to the White House, setting the stage for a crucial reset in US-China trade relations.
