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US says 100% tariff on China ‘off the table’ as trade deal ‘consensus’ reached ahead of Trump-Xi meet
The “consensus” was reached after two days of talks between Chinese Vice Premier He Lifeng and the US delegation led by treasury secretary Scott Bessent.
China on Sunday announced that they have reached a "basic consensus" on a potential trade deal with the United States, just days before US President Donald Trump is scheduled to meet his Chinese counterpart, Xi Jinping.
According to a report by Xinhua, the “consensus” was reached after two days of talks between Chinese Vice Premier He Lifeng and the US delegation led by treasury secretary Scott Bessent and US Trade Representative Jamieson Greer on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Kuala Lumpur.
Lifeng described the discussions as "candid, in-depth, and constructive." According to a CNN report, the talks covered a wide range of issues, including tariffs, export controls, trade in agricultural products, and cooperation on fentanyl-related enforcement.
The Chinese vice Premier said that the essence of the economic relations between Beijing and Washington is "mutual benefit and win-win results." He added that "both countries gain from cooperation and lose from confrontation."
What the US said after talks with China
Following the talks, US treasury secretary Scott Bessent told CBS News that Donald Trump's threat of imposing an additional 100% tariff on Chinese goods "has gone away."
The proposed tariffs were part of Trump's response to Beijing's expanded export controls on rare earth materials, which are essential for global industries like electronics and defence.
"We had a very good two-day meeting. I would believe that the - so it would be an extra 100% from where we are now, and I believe that 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 said.
According to the CNN report, both sides are now focused on preventing any escalation in their trade tensions, which had intensified earlier this month. Trump's tariff threats were initially set to take effect on November 1.
Donald Trump's meeting with Xi Jinping
Donald Trump arrived in Malaysia on Sunday for the ASEAN summit, the first stop of his five-day Asia tour that will end with a meeting with Xi Jinping in South Korea on October 30.
Speaking to reporters, Trump expressed optimism about progress: "I think we're going to have a deal with China."
The latest round of talks comes amid rising concern over China's new export controls on rare earth magnets and minerals, which have led to shortages worldwide. The two countries have also been imposing sanctions and curbs on each other's industries in recent months, despite earlier truces reached in Geneva in May and extended in August
