Oct 17, 2025 - Economy

Trump and China cool tariff tensions, but markets still remain in suspense

Courtenay Brown

Shipping containers from Hede Shipping, from the Chinese state-owned Hebei Port Group, are seen stacked at the Port of Los Angeles — Shipping containers from Hede Shipping, the Chinese state-owned Hebei Port Group, are stacked at the Port of Los Angeles. Photo: Frederic J. Brown/AFP via Getty Images

The week started with more trade flare-ups between the U.S. and China.

Both sides now appear to be making efforts to cool tensions after threats of a reignited trade war scared financial markets.

What they're saying: President Trump suggested that imposing an additional 100% tariff on Chinese goods likely couldn't last.

"It's not sustainable, but that's what the number is," Trump said in a clip of an interview with Fox Business. "They forced me to do that," he said, later adding that "I think we're going to do fine with China."
Last week, Trump threatened higher tariffs on Nov. 1 if China moved ahead with implementing harsher export controls on rare earths minerals.

The intrigue: Treasury Secretary Scott Bessent is set to speak with his Chinese counterpart Vice Premier He Lifeng about trade negotiations Friday, CNBC reported.

A Chinese state newspaper reported that the nation's officials were open to talks with the U.S.
That comes just days after Bessent and Trade Representative Jamieson Greer took a tough stance on China during a press conference, accusing the nation of trying to control the world's supply chains.
Bessent later pointedly said that China "can't be trusted."

The bottom line: Despite the softer tone, financial markets still remain in suspense about whether to expect higher tariffs on Chinese goods.

The levies would all but stop any flow of commerce from China, much like earlier this year.

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Trump and China cool tariff tensions, but markets still remain in suspense

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