WASHINGTON (TNND) — Amid escalating tensions over trade disputes, Treasury Secretary Scott Bessent shared that President Donald Trump will still be meeting with Chinese President Xi Jinping before the end of month.
Last Thursday, China announced greater restrictions on the export of its rare earth materials, leading Trump to announce he intended to slap a 100% tariff on all Chinese goods. However, Bessent shared in an interview with Fox Business on Monday that United States officials have “substantially de-escalated” the trade tensions with China.
“The 100% tariff does not have to happen,” Bessent said.
“The relationship, despite this announcement last week, is good. Lines of communication have reopened, so we’ll see where it goes.”
“President Trump said that the tariffs would not go into effect until November 1,” Bessent continued. “He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.”
Trump announced on Truth Social last Friday that he would not be meeting with Xi at the APEX Summit in South Korea at the end of the month, which came in response to China’s decision to restrict the rare earth materials.
“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump said on Truth Social on Friday.
But Trump’s tone changed on Sunday, suggesting that the United States is more than willing to work with China to ensure that the two nations can reach a fair negotiation to ensure that China isn’t hit with 100% tariffs.
“Don’t worry about China, it will all be fine!” Trump wrote in a Truth Social post on Sunday. “Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
This week, United States and Chinese officials will meet for sideline meetings during the International Monetary Fund and World Bank annual meetings held in Washington D.C. Trade negotiators from both countries previously found success after negotiating tariffs enacted in April set at well over 100% to now being set at 30% on Chinese imports and 10% on United States imports into China.
But China says it will not shy away from engaging in another trade war with the United States.
“China urges the U.S. to promptly correct its erroneous practices,” the Ministry of Foreign Affairs said on Monday. “If the U.S. insists on going its own way, China will certainly take resolute measures to safeguard its legitimate rights and interests.”
