Trump’s Tariff Threat on China Declared Off the Table
US Treasury Secretary Scott Bessent announced that President Donald Trump’s previously threatened 100% tariff on China is now “effectively off the table.” This statement comes as Trump prepares for a significant meeting with Chinese President Xi Jinping in South Korea this week, focusing on tariff negotiations and a deal involving the popular social media platform TikTok.
During an interview on CBS News’ “Face the Nation,” Bessent confirmed that US-China trade discussions are advancing positively. He indicated that the proposed tariff, which was set to take effect on November 1, 2023, is no longer a concern. Bessent is accompanying Trump on his weeklong tour in Asia, which will include stops in Malaysia and Japan.
“I’m not going to get ahead of the two leaders who will be meeting in Korea on Thursday,” Bessent remarked, referencing his own discussions with Chinese Vice Premier He Lifeng. “But I can tell you we had a very good two days. So 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.”
Progress in Trade Negotiations
Bessent’s remarks were echoed by Jamieson Greer, the US Trade Representative, who spoke to reporters in Malaysia. Greer stated, “We are moving forward to the final details of the type of agreement that the leaders can review and decide if they want to conclude together.” This indicates a significant shift in the dynamics of US-China trade relations.
In a separate interview on ABC News’ “This Week,” Bessent elaborated on the negotiations, stating that the US and China have established a “substantial framework” for future discussions. He emphasized the leverage Trump had during negotiations, particularly concerning China’s rare earth export controls.
TikTok Deal on the Horizon
In addition to tariff discussions, Bessent also highlighted that Trump and Xi could finalize a deal regarding TikTok during their upcoming meeting. He confirmed that a “final deal” was reached in Madrid, indicating that all details are now settled. This agreement is crucial as it pertains to the future operations of TikTok in the US.
ByteDance, the Chinese parent company of TikTok, is expected to divest its US operations in compliance with a 2024 divest-or-ban law. A consortium of companies and investors, including Larry Ellison of Oracle, Rupert Murdoch, and Michael Dell, are anticipated to take over TikTok’s US-based assets while ByteDance retains a minority stake.
As this pivotal meeting approaches, the outcome of these discussions could significantly impact the economic landscape and digital market regulations between the two nations. Representatives for the White House did not respond to requests for further comments on these developments.
