Ahead of meeting between President Trump and Chinese President Xi Jinping later this week, negotiators for the two countries on Sunday said they had hashed out the preliminary framework for a crucial trade deal.
"I think we have a very successful framework for the leaders to discuss on Thursday," Treasury Secretary Scott Bessent told reporters.
Trump said the deal is not final yet, but he expects it to work out. “I think we're going to come away with a deal,” he said.
The agreement reportedly may cover a broad range of issues, including Chinese export controls on rare earth metals, reciprocal tariff extensions, the purchase of U.S. soybeans and fentanyl trafficking. Bessent reportedly said the negotiations had wiped out the threat that Trump would impose 100% tariffs on Chinese imports starting next month and would likely see China to delay a move to restrict exports of rare earths.
In an appearance on ABC’s “This Week,” Bessent touted the progress made in the talks. “The president had given me maximum leverage when he threatened 100 percent tariffs if the Chinese imposed their rare earth global export controls. So I think we have averted that, so that the tariffs will be averted,” Bessent said. He added that the deal involves “substantial agriculture purchases for U.S. farmers.”
Trump and Xi may also finalize a deal to transfer majority ownership in TikTok and allow the app to continue operating in the United States.
Clashing with Canada: Even as the Trump administration may be nearing a potentially vital trade deal with China, easing simmering tensions between the world’s two largest economies, the president on Saturday ratcheted up his fight with Canada.
In a social media post, Trump announced that he will impose an additional 10% tariff on Canada. The move came in a fit of pique about an ad campaign by the Canadian province of Ontario centered on a 1987 address by former President Ronald Reagan in which he speaks negatively about tariffs.
Tariffs may look patriotic, Reagan said in his speech, and they may work for a short time. “But over the long run, such trade barriers hurt every American worker and consumer,” he said. “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens: markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs.”
After Trump complained about the ad, Ontario Premier Doug Ford said that he would end the campaign, but the ad still appeared in the broadcast of the first game of the World Series on Friday night and again during Game 2 on Saturday night.
Ford on Monday said the ad had worked to start a conversation. “You know why President Trump is so upset right now? It was because it was effective. It was working. It woke up the whole country,” Ford said. He added: “My intention was to inform the American people this is serious. And it is going to cost jobs if we don’t get a fair-trade deal with your closest friend and ally.”
The ad apparently put a chill on warming relations between Trump and Canadian Prime Minister Mark Carney. “Whether it’s provincial or Canada itself — they all knew exactly what the ad was. The prime minister knew,” Trump told reporters.
He said he won’t be meeting with Carney again anytime soon. "I don't want to meet with him," Trump said. “No, I'm not going to be meeting with them for a while. No, I'm very happy with the deal we have right now with Canada. We're going to let it ride.”
Carney told reporters that talk with the United States had made “considerable progress” and that he’s ready to resume discussions when the U.S. is ready.
“In any complicated, high-stakes negotiation, you can get unexpected twists and turns and you have to keep your cool during those situations,” Carney said. “We stand by the progress that had been made — the government of Canada does — and we are ready, when appropriate, to pick that up.”
The bottom line: Trump claimed that the Reagan ad was meant to interfere with an upcoming Supreme Court ruling in a case challenging whether Trump can unilaterally impose some of his tariffs. But the president’s anger-fueled decision to change trade policy based on his personal feelings may give those challenging his authority over tariffs more ammunition.