In a significant shift in tone regarding U.S.-China relations, President Donald Trump has reassured the public that a major trade conflict with China is not imminent. Speaking to reporters in front of the West Wing of the White House, Trump emphasized his desire to support China, stating that he has great respect for President Xi Jinping. In a post shared on Truth Social, he conveyed, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”
This comforting message comes just two days after Trump announced plans for a 100% tariff on China, which would be added to the existing 30% tariffs, beginning November 1. The president’s decision followed China’s strict regulations on rare earth minerals, which now require exporters to obtain government licenses—a move that Trump cited as indicative of Xi’s current challenges.
The initial tariff announcement had a negative impact on Wall Street, leading to a notable decline in major stock indexes. The S&P 500 fell by 2.71%, the Nasdaq dropped 3.56%, and the Dow Jones decreased by 1.90%. These drops mirrored a similar market reaction experienced in April when Trump first revealed his controversial “Liberation Day” tariff strategy. However, in the subsequent months, markets have been more resilient, rebounding with gains between 13% to 32% across the indices.
Additionally, Vice President JD Vance echoed Trump’s sentiment during an interview on Fox News, suggesting that the president is inclined to negotiate with China. Vance characterized Trump as a “reasonable negotiator” who values his relationship with Xi. He indicated that future negotiations will require careful navigation but expressed confidence in the U.S. position, asserting that the country holds a stronger negotiating stance with “far more cards than the People’s Republic of China.”
As the situation unfolds, the juxtaposition of tariffs and diplomatic dialogue reflects the complex dynamics of U.S.-China relations, highlighting both the tensions and the potential for cooperation in the years to come.
