© Josh Morgan-USA TODAY
(Washington, DC) – President Donald Trump and Chinese President Xi Jingping will soon met do discuss trade between both nations. That was confirmed by Treasury Secretary Scott Bessent on Monday, despite recent comments from Trump indicating additional, 100% tariffs could be slapped on imports from China.
On Friday, the stock market sold off, partially in response to Trump’s tariff threats. But then, in a social media post over the weekend, Trump said people shouldn’t worry about China — helping contribute to a big day for US stocks on Monday. At the closing bell, the Dow Jones Industrial Average had gained 588 points, the S&P 500 had soared over 1.5% higher, and the NASDAQ composite rose 2.2%.
Speaking to Fox Business, Treasury Secretary Bessent said the meeting between Trump and Xi will occur in South Korea. Bessent was able to negotiate a sort of temporary truce in the “US-China trade war” that touched off shortly after Trump’s inauguration. He also reported there was “substantial communication” in recent days between Beijing and US officials concerning the permitted export of rare-earth minerals. Those talks followed new restrictions or export rules on those types of materials — which are needed for batteries, magnets, and computer chips — especially those needed for the AI revolution.
The key moment in terms of fueling the stock market’s rise on Monday came over the weekend — as Trump sent out a Truth Social on Sunday. It read that Xi, “doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! … Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment.”
Bessent has described China’s economic strategy as them “versus the world.” He’s accused China of using a “bazooka (to fire) at the supply chains and the industrial base of the entire free world… a group of bureaucrats in China cannot tell us and our allies how to run our supply system.”
But the message from Trump on Sunday, and Bessent’s comments on Monday seemed to have calmed fears on Wall Street. President Trump has also blamed China for filling nearly one in every 1,000 Americans since 2020, as a result of fentanyl exports. He’s also demanded “reparations” for COVID-19 deaths. Trump and President Xi have not yet met in person, since the beginning of his second term.
