UPDATE: U.S. Treasury Secretary Scott Bessent just confirmed that President Donald Trump‘s alarming threat of a 100% tariff on China is now “effectively off the table.” This significant development comes just days before Trump is set to meet with Chinese President Xi Jinping in South Korea this Thursday.
During a live interview on CBS News’ “Face the Nation,” Bessent emphasized that trade negotiations between the U.S. and China are making headway. The looming November 1 deadline for the proposed tariffs has been a major concern for both nations, but Bessent noted that these threats have diminished following recent discussions with Chinese officials.
Bessent is accompanying Trump on his nearly weeklong tour across Asia, which includes stops in Malaysia and Japan. He described the recent talks with Chinese Vice Premier He Lifeng as “very good,” indicating a productive path toward resolving trade issues.
“I can tell you we had a very good two days,” Bessent stated. “The threat of the 100% tariffs has gone away, as has the threat of immediate Chinese export controls.” This statement reflects a positive shift in U.S.-China relations amidst ongoing tensions.
In a separate interview on ABC News’ “This Week,” Bessent further elaborated, stating that both nations have reached a “substantial framework” for trade negotiations. He highlighted that the leverage created by Trump’s tariff threats has played a crucial role in averting a potential crisis surrounding China’s rare earth export controls.
Echoing Bessent’s sentiments, Jamieson Greer, the U.S. trade representative, indicated that they are finalizing details for an agreement that will be presented to the leaders for approval. “We are moving forward to the final details of the type of agreement that the leaders can review,” Greer said while in Malaysia.
Additionally, Bessent hinted at the possibility of finalizing a deal regarding TikTok during the upcoming meeting. He claimed, “We reached a final deal on TikTok… and I believe that as of today, all the details are ironed out.” The deal reportedly involves the Chinese company ByteDance selling TikTok’s U.S.-based assets to a coalition of investors, including tech moguls like Larry Ellison and media tycoon Rupert Murdoch.
This anticipated transaction is critical due to impending U.S. legislation that mandates the divestment or banning of foreign-owned apps by 2024. As the clock ticks down, the outcome of these discussions holds enormous implications for both American consumers and the international tech landscape.
As Trump and Xi prepare to meet, all eyes will be on their discussions this Thursday in South Korea. The developments regarding tariffs and TikTok could reshape U.S.-China relations and alter the economic dynamics between these two global powers.
Stay tuned as we continue to monitor these urgent developments and their implications for international trade.