Trump Signals Potential China Trade Deal Within Weeks as Beijing "Reaches Out" Following 145% Tariff Hike
President Donald Trump revealed Thursday that Chinese officials have been "reaching out a lot" since his administration nearly tripled tariffs on Chinese imports to 145% last week. The outreach suggests a potential thaw in U.S.-China trade tensions, with Trump indicating a comprehensive deal could be finalized within three to four weeks. This development comes amid growing concerns about economic impacts on both nations and as the administration simultaneously launches new investigations into critical minerals security.
Key Developments in U.S.-China Trade Relations
Trump Hints at Potential Deal Timeline
In comments to reporters at the White House, President Trump expressed optimism about the trajectory of trade negotiations with China. "I would think over the next three or four weeks, I think maybe the whole thing could be concluded," Trump stated, suggesting that high-level Chinese officials have been actively communicating since the tariff increase Fox News1.
The president emphasized that these communications likely have Chinese President Xi Jinping's knowledge and approval. "If you knew [Xi], you would know that if they reached out, he knew exactly – he knew everything about it. He runs it very tight, very strong, very smart," Trump explained Fox News1.
Reluctance to Further Escalate Tariff War
In a notable shift in tone, Trump expressed hesitation about continuing to increase tariffs on Chinese goods. "At a certain point, I don't want them to go higher because at a certain point you make it where people don't buy," he said Fox Business2.
The president even suggested he might consider lowering the tariffs: "I may not want to go higher, or I may not want to even go up to that level. I may want to go to less because, you know, you want people to buy" Fox Business2.
This apparent restraint comes after the administration recently raised tariffs on Chinese imports from 54% to 145%, part of a broader trade policy that has involved escalating measures against Beijing Fox News1.
Section 232 Critical Minerals Investigation Launched
While signaling openness to a trade deal, the Trump administration simultaneously announced a new investigation into critical minerals under Section 232 of the Trade Expansion Act of 1962. This executive order directs the Commerce Secretary to investigate whether reliance on imported processed critical minerals threatens national security White House3.
The action comes in response to recent Chinese restrictions on key materials. "A few months ago, China banned exports to the United States of gallium, germanium, antimony, and other key high-tech materials with potential military applications," the White House stated, adding that "just this week, China suspended exports of six heavy rare earth metals, as well as rare earth magnets" White House3.
Global Reactions to Trade Tensions
Chinese Response to U.S. Tariff Increases
According to Trump, Chinese officials have reached out "a number of times" since the tariff increase last week Fox News1. While he did not confirm direct communication with Xi Jinping himself, Trump emphasized that the outreach has been frequent and significant.
The president characterized China's approach as proactive, though he didn't provide specific details about the content of these communications or which officials were involved in the outreach efforts Bloomberg4.
TikTok Deal Linked to Broader Trade Negotiations
Trump also addressed the ongoing saga of TikTok's U.S. operations, linking it to the broader trade dispute. "Well, we have a deal for TikTok, but it'll be subject to China, so we'll just delay the deal till this thing works out," he stated Fox Business2.
The president suggested that the resolution of TikTok's status in the U.S. market could be part of a comprehensive trade agreement. "I think it's a good deal for China. TikTok is good for China. And I think they'd like to see us do a deal, especially the deal that we have pretty much done with some of the best companies in the world," Trump added Fox Business2.
Expert Insights on Trade Negotiations
Current Tariff Structure Impact
While the specific expert opinions were limited in the source materials, the context suggests significant concerns about the economic impact of the current tariff structure. Trump's comments about potentially lowering tariffs to ensure "people buy" indicate awareness of the economic consequences of sustained high tariffs Fox Business2.
The administration's current tariff policy toward China includes:
- A 125% reciprocal tariff
- A 20% tariff addressing the fentanyl crisis
- Section 301 tariffs on specific goods ranging from 7.5% to 100%
These combined measures potentially subject Chinese imports to tariffs as high as 245% White House3.
National Security Considerations
The administration's Section 232 investigation into critical minerals reflects expert concerns about supply chain vulnerabilities. The White House fact sheet notes that "processed critical minerals and their derivative products are key building blocks of our defense industrial base" essential for technologies including "jet engines, missile guidance systems, advanced computing, radar systems, advanced optics, and secure communications equipment" White House3.
This security-focused approach highlights the administration's attempt to balance trade concerns with national defense priorities when crafting its China policy.
Future Implications for U.S.-China Relations
Potential Outcomes of Current Negotiations
Trump outlined two potential paths forward in the trade relationship with China:
A comprehensive deal within three to four weeks, potentially resolving tariff issues and the TikTok situation.
Alternatively, if no deal materializes, "the U.S. will just set a tariff and establish some parameters, inviting China to 'come in and shop,'" according to Trump Fox News1.
The president's comments suggest flexibility in the approach, with multiple possible outcomes depending on China's response to current U.S. demands.
Long-term Strategic Competition
The parallel actions on critical minerals indicate that even with a potential trade deal, strategic competition with China will continue. The White House explicitly states that "foreign producers have engaged in price manipulation, overcapacity, and arbitrary export restrictions, using their supply chain dominance as a tool for geopolitical and economic leverage over the United States" White House3.
This suggests that while a trade deal may address immediate tariff concerns, the administration will continue to pursue actions aimed at reducing dependency on Chinese critical minerals and technologies in the long term.
A Delicate Balance in U.S.-China Trade Relations
As President Trump weighs the impact of escalating tariffs against the benefits of a comprehensive trade deal, the coming weeks could prove pivotal for the economic relationship between the world's two largest economies. Will the frequent communications from Beijing lead to a breakthrough agreement, or is this simply another chapter in the ongoing economic competition between the United States and China?
President Trump displays a chart showing the recent increase in tariffs on Chinese imports. Credit: Fox News
