Beijing and Washington agree to resume trade talks amid renewed tariff tensions

Saturday 18 October 2025 - 09:30

By: Sahili Aya

Beijing and Washington agree to resume trade talks amid renewed tariff tensions

Washington, October 18, 2025 — The United States and China have agreed to resume high-level trade negotiations in an effort to ease renewed tensions between the world’s two largest economies.

U.S. Treasury Secretary Scott Bessent announced on Friday that he will meet next week in Washington with Chinese Vice Premier He Lifeng, who oversees trade policy in Beijing. The goal is to lay the groundwork for new negotiations aimed at preventing another tariff escalation.

China confirmed Saturday that it was ready to begin talks “as soon as possible,” signaling a potential thaw after several weeks of confrontation.

Rising Tensions Over Rare Earth Exports

The move follows a sharp spike in trade tensions last week after Beijing imposed stricter export controls on rare earth minerals and technologies essential to refining them—resources critical for industries ranging from smartphones to defense systems.

The Chinese decision drew immediate criticism from U.S. President Donald Trump, who threatened to impose 100% tariffs on Chinese goods, in addition to the 30% already in place. Trump also warned that he might cancel his meeting with President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month.

“Frank and Constructive” Discussions

According to the Xinhua News Agency, the phone call between He Lifeng and Scott Bessent was “frank, in-depth, and constructive.” Bessent echoed that sentiment on social media, describing “detailed discussions” and confirming that both sides would meet in person next week to continue the dialogue.

U.S. Trade Representative Jamieson Greer also joined the conversation. Washington had previously accused Beijing of “weaponizing” rare earth exports to pressure Western economies.

Hours later, Fox News aired excerpts from a Donald Trump interview in which he indicated he still plans to meet Xi Jinping at the APEC summit — a move analysts see as a cautious signal of de-escalation.

G7 Coordination Against China’s Trade Strategy

Meanwhile, Washington has been rallying its allies. The G7 finance ministers agreed Friday to coordinate their response to Beijing’s export restrictions.

“We have decided, both bilaterally with the United States and within the G7 framework, to coordinate our approach and share information on contacts with Chinese officials,” said Valdis Dombrovskis, the European Commissioner for the Economy.

German Finance Minister Lars Klingbeil confirmed that the G7 “opposes China’s current trade approach,” while IMF Managing Director Kristalina Georgieva called for an urgent agreement to “reduce tensions and stabilize markets.”

Trade relations between the U.S. and China have remained volatile since Donald Trump’s return to the White House earlier this year. Both countries had previously imposed reciprocal tariffs exceeding 100%, later scaled back to around 10% on U.S. goods and 30% on Chinese products, but mutual distrust persists.