URGENT UPDATE: Treasury Secretary Scott Bessent has just confirmed that the United States and China remain on track for a critical trade agreement, with hopes for finalization by Thanksgiving. In a tense interview with Fox News, Bessent emphasized the importance of trusting China to uphold its commitments despite growing skepticism.
The potential deal, which is yet to be signed, follows a framework agreement reached last month. This initial pact saw the U.S. agree not to impose 100% tariffs on Chinese imports, while China pledged to halt restrictions on rare earth exports for one year. However, troubling reports have emerged indicating that China may hold back on these commitments.
Bessent stated, “We haven’t even finished the agreement, which we hope to have done by Thanksgiving.” He expressed confidence that following the recent meeting between President Donald Trump and President Xi Jinping in South Korea, China will honor its agreements.
Amid these developments, the Wall Street Journal reported last week that China is planning to exclude companies with U.S. military ties from expedited export approvals, raising concerns about the sincerity of their commitments. Furthermore, the Agriculture Department released data indicating that China has made only two purchases of U.S. soybeans since the high-profile summit, casting doubt on its intentions to buy significantly more as previously promised.
When asked about potential U.S. actions if China fails to comply with the trade deal, Bessent warned, “The U.S. has lots of levers. All options are on the table, but I think we have to go into this believing that President Xi will keep his word to President Trump.”
As negotiations continue, all eyes will be on whether the U.S. and China can bridge the gap before the Thanksgiving deadline. This trade deal not only affects international relations but also has profound implications for global markets and economies.
Stay tuned for further updates on this critical situation that could reshape the economic landscape between the U.S. and China.
