WASHINGTON (TNND) — Making stops in Malaysia, Japan and South Korea, President Donald Trump’s meetings with world leaders in Asia this week carry major implications for America’s economy, with the main event being an anticipated meeting with Chinese President Xi Jinping on Thursday on the sidelines of the Asia-Pacific Cooperation Summit.
“We have a lot to talk about with President Xi and he has a lot to talk about with us. I think we’ll have a good meeting,” Trump told reporters while departing from the White House Friday night.
Since Trump’s “Liberation Day” in early April, tariff levels and diplomatic relations between the two economic superpowers have been on a rollercoaster ride. On April 2, Trump said China was “taking tremendous advantage of us.” Last week, Trump said, “I think China’s been very respectful of us.”
Currently, Trump has a roughly 58% tariff on most Chinese imports to the United States, while China’s tariffs on American imports stand at about 33%.
After months of talks between senior officials, tensions skyrocketed when China announced global export controls on its coveted rare earth minerals and Trump responded with a threat to impose an additional 100% tariff on Chinese imports on November 1.
Over the weekend, Treasury Secretary Scott Bessent announced he and his Chinese counterpart, Vice Premier He Lifeng, reached a “very substantial framework” to avoid this outcome. He said Trump’s tariff threat is “effectively off the table” and that it does not include the U.S. changing its export controls.
“I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed,” Bessent said.
China’s top trade official Li Chenggang confirmed they reached a “preliminary consensus.”
Trump and Xi are expected to discuss China’s recent pivot to purchasing soybeans from Argentina instead of the U.S., a move that came at poor political timing for Trump, immediately after his administration announced $40 billion in private loans and a currency swap for Argentina.
The issue has prompted criticism, including from Rep. Marjorie Taylor Greene, R-Ga., who said it’s “probably one of the grossest things I’ve ever seen” and questioned how the “bailout” for Argentina puts America first.
Bessent expressed optimism that Trump and Xi will be able to discuss the prospect of China resuming purchases from the U.S., which can’t come soon enough for American soybean farmers.
According to the American Soybean Association, China has not purchased any of the soybean crop currently being harvested. By mid-September last year, about one-third of annual U.S. soybean exports had already been ordered.
“The frustration is overwhelming,” ASA President Caleb Ragland said in a statement.
The ASA said it’s encouraged by the news of U.S.-China trade talks.