US warns China of 100% tariffs before talks
Scott Bessent said the deal would resolve TikTok sale disputes and secure ongoing supply of vital rare earth magnets.
The United States and China have reportedly reached a broad understanding on several contentious points, signaling a potential breakthrough ahead of the much-anticipated meeting between President Donald Trump and Chinese President Xi Jinping later this week. The development has raised hopes that tensions between the world’s two largest economies might finally be easing after months of escalating threats and retaliatory measures.
US Treasury Secretary Scott Bessent confirmed that the Trump administration’s earlier threat to impose 100% tariffs on Chinese imports “is effectively off the table,” a remark that immediately set a positive tone in Washington and global markets. His comments suggested that both sides were serious about stabilizing trade relations and avoiding another damaging cycle of tariffs and counter-tariffs.
Meanwhile, a senior Chinese official told Bloomberg that Beijing and Washington had reached an initial consensus on several sensitive issues, including export controls, fentanyl regulation, and shipping costs. These topics have long been stumbling blocks in trade discussions, often reigniting tensions just when progress seemed near. The new alignment marks a stark contrast to the hostility seen in recent weeks, when China’s decision to tighten export restrictions on certain materials was met by Trump’s threat to slap additional tariffs on Chinese goods—a move that had raised the specter of a full-blown trade war.
“We had a very good two-day meeting,” Bessent said, striking an optimistic tone. “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.”
Bessent added that the upcoming Trump–Xi agreement would not only extend the existing tariff truce but also settle long-running disputes over the ownership and sale of TikTok, the popular social media platform that has been at the center of a geopolitical tug-of-war. In addition, the deal is expected to secure a steady supply of rare earth magnets—critical components used in everything from electric vehicles to defense equipment—ensuring stability in one of the most strategically important segments of global trade.
In another key development, Bessent revealed that China has agreed to make “substantial” purchases of American soybeans as part of the trade package. This would be a welcome relief for U.S. farmers who have been struggling since Beijing, once their largest customer, scaled back imports amid the trade dispute. For many agricultural communities across the Midwest, soybean exports are more than just numbers—they’re a lifeline. The potential resumption of large-scale Chinese purchases could inject new vitality into rural economies still recovering from previous losses.
If China follows through on its promise, the agreement could represent a rare win-win moment for both sides: the U.S. would regain a key export market and help its farmers rebound, while China would strengthen food security and demonstrate goodwill in ongoing economic diplomacy.
For now, optimism is cautious but real. The diplomatic thaw ahead of the Trump–Xi summit hints at a broader understanding that neither nation benefits from confrontation. After years of tariffs, restrictions, and recriminations, both Washington and Beijing seem ready—at least for now—to trade threats for talks.