U.S., China Reach Tentative Trade Deal, Avoiding New Tariffs
A tentative trade agreement has been reached between the United States and China, averting the implementation of a new round of tariffs and addressing concerns over export controls and the TikTok app, U.S. Treasury Secretary Scott Bessent announced today.
The agreement, details of which are still emerging, reportedly ensures China will not impose export controls on rare earths, while the U.S. will forgo 100 percent tariffs on Chinese imports previously scheduled for November 1st. A “final deal” regarding the sale of video-sharing platform TikTok in the U.S. is also included in the understanding. This development comes as global supply chains remain sensitive to geopolitical tensions.
Speaking while en route to Malaysia yesterday, President Trump acknowledged the need for compromise from both sides, stating, “Sure, they’ll have to make concessions. I guess we will, too.” He also warned that the previously threatened 157 percent tariffs on Chinese goods were “not sustainable for them,” but reiterated his willingness to “press ahead” with such measures if negotiations were to collapse. For more on U.S.-China relations, see analysis from the Council on Foreign Relations.
President Trump further expressed his positive relationship with Chinese President Xi Jinping, saying, “I have a lot of respect for President Xi. He likes me a lot, I believe, and respects me. And I think he respects our country a lot. We’re going to have a successful transaction for both countries.” The two leaders previously met in Beijing in November 2017, following an invitation from China to hold the meeting at Mar-a-Lago in Florida the prior year – a gesture highlighted by a White House spokesperson at the time. The history of trade negotiations between the two nations can be found at the Office of the United States Trade Representative.
Officials indicated that further details of the agreement will be released in the coming days, and both sides will continue to work towards a comprehensive resolution of outstanding trade issues.
