Trump Softens, De-escalates Trade Tensions with China
US President Donald Trump made a surprising move by softening his rhetoric toward China after previously threatening to impose 100% tariffs. His new statement that "everything will be fine" and his intention to maintain positive relations have provided a breath of fresh air to global markets.
This move comes after an escalation in tensions sparked by Beijing's announcement of restrictions on the export of rare earth metals, a key ingredient for the global high-tech industry. Trump, through a post on Truth Social, attempted to allay concerns, stating that the US intention was not to harm China, but to cooperate.
In Washington, Treasury Secretary Scott Bessent expressed optimism that the meeting between Trump and President Xi would proceed later this month, and that bilateral relations could be de-escalated through diplomacy.
Meanwhile, the market responded positively to the change in tone, with Wall Street recording a significant rebound after the previous week's sharp decline.
However, analysts cautioned that the change in rhetoric does not guarantee a resolution to the conflict. Concrete policy decisions and subsequent steps in trade negotiations will be the true test of efforts to defuse tensions.
Source: Newsmaker.id
