US-China Trade Talks Set After Trump’s 100% Tariff Warning

The United States and China have agreed to hold new trade discussions. This follows a major tariff threat from President Donald Trump. The announcement came after a high-level video call between officials from both nations.

China’s state media confirmed the planned talks on Saturday. The world’s two largest economies are once again at a crossroads. This development aims to de-escalate recent tensions.

High-Stakes Diplomacy Follows Tariff Ultimatum

President Trump announced sweeping new tariffs last week. He proposed 100% additional levies on all Chinese exports to the United States. This dramatic escalation was scheduled for November 1.

According to Reuters, the announcement sent shockwaves through global markets. The tariffs would affect hundreds of billions of dollars in goods. US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng held urgent talks.

Their video call was described as “candid” and “constructive.” Both sides expressed a desire to find a path forward. The call paved the way for the new round of negotiations.

A Path to De-escalation and Potential Summit

The agreement to talk signals a potential pause in hostilities. Secretary Bessent had previously stated he hoped to “get things back on a good course.” He expressed confidence in the leaders’ relationship.

President Trump also revealed a potential meeting with President Xi Jinping. The two leaders could meet in South Korea in the coming weeks. Trump has consistently expressed admiration for the Chinese leader.

This high-level engagement is seen as crucial for a resolution. The planned tariffs and new export controls represent a significant economic threat. Both economies would feel the impact of a full-scale trade war.

The resumption of US-China trade talks offers a crucial window for diplomacy. Global markets will be watching closely as the November tariff deadline approaches. The outcome of these discussions could define the economic relationship for years to come.

Info at your fingertips

What new tariffs did Trump propose?

President Trump announced a 100% additional tariff on all Chinese exports to the US. He also threatened new export controls on critical software. These measures were slated for November 1.

Who conducted the recent US-China talks?

US Treasury Secretary Scott Bessent spoke with China’s Vice Premier He Lifeng. Their video call was reported by China’s Xinhua news agency. The discussion was described as constructive.

Is a Trump-Xi meeting planned?

President Trump said he would meet with President Xi Jinping in two weeks. The meeting is planned to take place in South Korea. This would be a critical face-to-face discussion.

How have markets reacted to the trade tensions?

Global markets have shown volatility following the tariff threats. The announcement of new talks has provided some stability. Investors remain cautious ahead of the November deadline.

What was the official Chinese response?

China agreed to hold new trade talks “as soon as possible.” The government emphasized its commitment to constructive dialogue. This indicates a desire to avoid further escalation.