Vasile Iliescu
Romania
1m
๐–๐ก๐š๐ญ ๐“๐จ ๐„๐ฑ๐ฉ๐ž๐œ๐ญ ๐…๐ซ๐จ๐ฆ ๐“๐ก๐ฎ๐ซ๐ฌ๐๐š๐ฒ'๐ฌ ๐”๐’-๐‚๐ก๐ข๐ง๐š ๐“๐ซ๐š๐๐ž ๐“๐š๐ฅ๐ค๐ฌ President Donald Trump and Chinese president Xi Jinping are set to meet in South Korea Thursday and hammer out a trade deal. The two countries have tentatively agreed on a framework that would defuse threats of higher tariffs and export restrictions that both countries have made in recent months. The deal is likely to represent a de-escalation of the trade war, but not settle it completely. "I believe that we have the framework for the two leaders to have a very productive meeting for both sides," Bessent said on Meet The Press Sunday. "And I think it will be fantastic for U.S. citizens, for U.S. farmers, and for our country in general." Should the negotiations play out as Bessent indicated, they would alleviate several economic threats that have emerged in recent months as the U.S. and China have imposed tit-for-tat trade measures against one another. Stocks rose Monday on optimism that the recent trade wars would de-escalate. The extra tariffs are now likely "off the table," Bessent said on Face The Nation. He also said he expects China to issue "some kind of deferral" on its rare earth export controls. In another sign of progress, Scott said China would likely resume buying soybeans from the U.S., potentially reinstating the number one customer for U.S. soy farmers after China halted all purchases earlier this year. China may also take action to reduce fentanyl smuggling to the U.S., which could pave the way for Trump to remove the 20% tariff he had imposed to crack down on the flow of illicit drugs. Overall, the talks could help cool the on-again, off-again trade war between the U.S. and China that flared up this year as Trump has sought to remake U.S. trade policy. However, some experts said the talks were unlikely to settle underlying differences that drive the conflict, including the American trade deficit with China that Trump has frequently criticized, and American reliance on rare earths from China, which dominates the market for the critical materials. Have a great trading week!
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