UPDATE: U.S. Treasury Secretary Scott Bessent confirmed that President Donald Trump‘s previously stated 100% tariff threat on China is now “effectively off the table.” This announcement comes just days before Trump is set to meet with Chinese President Xi Jinping in South Korea on Thursday, November 2, 2023.
During a crucial interview on CBS News’ “Face the Nation,” Bessent disclosed that the trade discussions between the U.S. and China are making significant progress. The 100% tariff, initially slated to take effect on November 1, has been reevaluated following productive talks with Chinese officials. Bessent, who is traveling with Trump on a weeklong tour across Asia, emphasized, “I expect that the threat of the 100% has gone away.”
Bessent highlighted the recent meeting he had with Chinese Vice Premier He Lifeng, stating, “We had a very good two days,” reinforcing the notion that both nations are moving closer to a trade agreement. He added that the immediate threat of China initiating a global export control regime has also diminished.
In a parallel interview on ABC News’ “This Week,” Bessent described the negotiations as having reached a “substantial framework,” positioning the U.S. and China on the brink of a conclusive agreement. U.S. Trade Representative Jamieson Greer echoed Bessent’s optimism, stating that they are finalizing the details of an agreement that could be presented to the leaders for approval.
Aside from tariffs, another pressing issue on the agenda is the future of TikTok. Bessent noted that Trump and Xi could finalize a deal regarding the popular social media platform during their Thursday meeting. “We reached a final deal on TikTok,” he confirmed, stressing that all details have been ironed out and are ready for the leaders to consummate.
The deal is expected to involve the sale of TikTok’s U.S.-based assets by its Chinese owner, ByteDance, in compliance with a looming 2024 divest-or-ban law. Industry leaders, including Larry Ellison of Oracle, Rupert Murdoch, and Michael Dell, are anticipated to take over the operations of TikTok in the U.S., while ByteDance will retain a minority stake.
This pivotal meeting on Thursday could reshape the economic relationship between the U.S. and China significantly. As both nations grapple with trade tensions, the outcome of these discussions will have far-reaching implications for global markets.
As events unfold, all eyes will be on Trump and Xi as they navigate these critical negotiations. Officials have yet to provide further details, but the urgency of these talks underscores the importance of cooperation between the world’s two largest economies.
Stay tuned for updates as this developing story progresses and impacts global markets and international relations.
