US and China to hold new round of trade talks focused on tariff reductions
Photo: US Treasury Secretary Scott Bessent (Getty Images)
A new round of trade negotiations between the United States and China is expected to take place next week, with both sides set to discuss potential tariff cuts, Bloomberg reports.
US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are set to discuss ways to reduce new escalation measures between the world’s two largest economies during an upcoming meeting.
Bessent confirmed he will speak with He Lifeng on Friday evening, followed by an in-person meeting "likely in Malaysia next week" to prepare for the anticipated summit between US President Donald Trump and Chinese leader Xi Jinping.
"These talks will help us prepare for the presidents’ meeting," Bessent said, signaling Washington’s attempt to calm fears of a full-scale trade war. The US Treasury chief’s comments came shortly after Trump expressed optimism that negotiations could yield a deal easing tensions after his earlier threats to raise tariffs.
"I think we’re doing very well. I think we’re getting along with China," Trump told reporters. He also indicated confidence that his meeting with Xi would take place at the APEC summit in South Korea in October.
Background
Just a week earlier, Trump had considered canceling what would have been his first face-to-face meeting with Xi since returning to the White House, angered by Beijing’s pledge to impose tighter controls on rare earth exports. He also announced a 100% tariff hike on Chinese imports starting November 1, but later described such levels as "unsustainable" on Fox News, signaling a softer approach.
Earlier this year, Washington and Beijing reached a temporary truce, the US suspended 145% tariffs on Chinese goods, while China agreed to resume exports of rare earth magnets. That agreement is set to expire in November.
The upcoming talks, expected to be held on the sidelines of the ASEAN summit in Kuala Lumpur, will mark the fifth round of bilateral negotiations after previous meetings in Madrid, Stockholm, London, and Geneva.
"I think things have de-escalated," Bessent said Friday. "We hope that China will show the respect that we have shown them. And I am confident that President Trump, because of his relationship with President Xi, will be able to get things back on a good course."
