Hope Amid Tariffs: US Signals Possible Thaw in China Trade Relations

In a recent development, US Director of the National Economic Council Kevin Hassett expressed his optimism about resolving the ongoing trade disputes between the United States and China. Speaking to reporters on Friday, Hassett indicated that both President Donald Trump and Chinese President Xi Jinping share a strong personal rapport, which could potentially facilitate an eventual agreement. 'President Trump and President Xi are great friends,' Hassett stated, emphasizing the role of skilled negotiators like Scott Bessent in finding a path to resolution.

Despite acknowledging recent frictions in US-China relations, Hassett hinted at a possible easing of tensions. He admitted that the US had been frustrated by certain Chinese actions, deemed unacceptable in recent weeks, but noted a noticeable thawing of relations. 'We were frustrated, but there has been a sort of thawing over the last few days,' Hassett commented, cautiously optimistic about reaching a trade agreement potentially before the deadline of November 1.

Hassett's comments come at a time when the US-China economic relationship has been severely strained over issues like tariffs, technology transfers, and market access. President Trump announced intentions to impose a 155% tariff on Chinese imports starting November 1, despite expressing a desire to maintain amicable ties. Trump's decision followed what he described as China's extraordinarily aggressive trade positioning and a hostile international communiqué. On Truth Social, Trump announced further tariffs and export controls as a countermeasure to China's planned large-scale export restrictions set for 2025.