Trump anticipates a positive agreement with China before the meeting with Xi

TOKYO — Anticipation for a Trade Deal

President Trump has expressed optimism about a “successful deal” in his upcoming meeting with Chinese President Xi Jinping, scheduled for Thursday. This follows negotiators from both nations drafting a trade deal framework aimed at avoiding Trump’s potential imposition of 100% tariffs on Chinese imports.

“I genuinely believe the deal will benefit both countries,” Trump stated as he embarked on his journey to Japan, which is the second stop in a three-nation tour that will conclude in South Korea with a summit alongside Xi Jinping.

However, he also acknowledged the fluid nature of negotiations: “I don’t want to disclose the specifics just yet because the agreement we reached a couple of days ago might look different by the time we reconvene.” There’s a sense of caution in his tone, a reminder that final details can shift unexpectedly.

During a briefing on the presidential plane, with Treasury Secretary Scott Bessent and Trade Representative Jamison Grier by his side, Trump discussed the trade framework’s core issues. Bessent noted that it addresses significant areas of tension in the U.S.-China relationship, particularly China’s new export restrictions on critical minerals. This situation has prompted Trump to consider increasing tariffs on goods exported to China.

“We have a concrete framework for both leaders to review. Our discussions covered various topics, from tariffs to trade regulations to issues surrounding fentanyl and major purchases of U.S. agricultural products,” Bessent said.

“I feel pretty optimistic,” Trump jokingly remarked, perhaps to lighten the mood for the reporters present. “This guy’s got broad shoulders. If there’s any turbulence, I might just hold on for dear life!”

The president also mentioned that an agreement regarding leasing TikTok’s algorithm from a primarily U.S. investor consortium could be finalized on the same day. “We’ve received initial approval from President Xi. I think we’re close, but I’ll hold off on details for a few days,” he added.

One pressing matter Trump intends to raise with Xi is the issue of China’s fentanyl exports, which are currently subjected to a 20% tariff. “This substance has claimed about 330,000 American lives over five years,” he noted, a sobering statistic that seems to weigh heavily on his agenda.

“China is effectively absorbing a 20% tariff on this trade. They stand to rake in $100 million from fentanyl sales, but with tariffs rising to 157% on November 1st, it becomes increasingly difficult for them to sustain this,” Trump explained.

Having just signed four trade agreements on the sidelines of the ASEAN meeting in Kuala Lumpur, where his Asian tour began, Trump remains hopeful about establishing a comprehensive deal with Xi. The new arrangements will grant Cambodia, Malaysia, Thailand, and Vietnam tariff reductions on certain products in exchange for commitments to purchase American goods and invest in the U.S.