In an effort to stabilize economic relations, the United States and China are preparing for a new round of trade talks next week. President Donald Trump described US tariffs on Chinese imports as ‘unsustainable’. His comments come amid escalating tensions between the two nations, particularly concerning tariffs and trade restrictions.
Trade Talks in Malaysia
The discussions will take place in Malaysia, where US Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng. This follows a recent video call between the two officials, which Xinhua, the Chinese state media, described as “candid and constructive”.
Upcoming APEC Summit
Trump is scheduled to meet Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this November. During a recent interview, Trump addressed the challenging cumulative tariff rate of 157% on Chinese goods, admitting its long-term viability is doubtful. He stated, “It’s not sustainable, but that’s what the number is… They forced me to do that.”
China’s Export Controls
Last week, China intensified its export controls on rare earth elements, crucial for technology manufacturing. In response, Trump threatened to impose 100% tariffs on imports from China. US officials, including Bessent and Trade Representative Jamieson Greer, criticized China’s actions, suggesting they pose risks to global supply chains.
Recent Developments and Future Meetings
- Trump’s tariffs currently create significant economic tension.
- The upcoming trade negotiations aim to address these unresolved issues.
- Bessent and He have already met multiple times in Europe to reduce tariffs.
The existing tariff agreement is set to expire on November 10. Officials from both countries are optimistic that these discussions could lead to a resolution and provide some relief to their respective economies. Continued dialogue will be essential in navigating these complex trade relations.
