In a surprising turn of events that could reshape U.S.-China economic relations, Treasury Secretary Scott Bessent has signaled that President Donald Trump’s aggressive tariff threats against China are effectively shelved, paving the way for renewed trade talks and a potential resolution to the long-standing TikTok saga. Speaking in recent interviews, Bessent highlighted the upcoming meeting between Trump and Chinese President Xi Jinping in South Korea as a pivotal moment for finalizing deals on multiple fronts, including tariffs and the popular social media app’s ownership.

The comments come amid heightened tensions that have defined the Trump administration’s approach to Beijing since early 2025, with initial proposals for tariffs as high as 100% on Chinese goods aimed at addressing trade imbalances and national security concerns. However, Bessent’s statements suggest a pragmatic shift, emphasizing diplomacy over escalation.

As negotiations intensify ahead of the Trump-Xi summit, industry experts are closely watching how this detente might influence global supply chains, particularly in tech and agriculture sectors that have borne the brunt of previous trade wars.

According to reports from Business Insider, Bessent expressed optimism about “major progress” in trade negotiations, noting that the tariff threats served as leverage to extract concessions from China without actual implementation. This framework reportedly includes China’s commitment to substantial purchases of U.S. soybeans, a move that could bolster American farmers and ease domestic political pressures on the administration.

Furthermore, the TikTok deal appears on the cusp of resolution, with Bessent confirming that a “final deal” has been reached for the app’s sale, transferring majority ownership to American entities while preserving certain operational elements. This development follows months of back-and-forth, as detailed in coverage from The New York Times, where Bessent described the agreement as one that safeguards U.S. national security interests without fully severing the app’s ties to its Chinese origins.

Delving deeper into the economic implications, this tariff truce could avert disruptions estimated to cost billions in cross-border trade, but questions linger about enforcement mechanisms and long-term compliance from both sides.

Sources like The Guardian note that the plan forms part of a broader trade framework, though specifics on TikTok’s new ownership structure remain sparse, fueling speculation among tech insiders about potential buyers such as Oracle or Microsoft affiliates. Bessent’s role as a key negotiator has been instrumental, drawing on his hedge fund background to navigate complex financial arrangements.

The deferral of China’s rare earth export controls, another concession highlighted in Mint reporting, underscores the mutual benefits at play, potentially stabilizing prices for critical minerals used in electronics and renewable energy.

For industry insiders, the real test will come post-summit, as the deals’ durability hinges on geopolitical stability amid ongoing U.S. concerns over intellectual property theft and cyber threats from China.

Posts on X, formerly Twitter, from figures like Bessent himself reflect a narrative of tough but effective bargaining, with one post emphasizing Trump’s readiness to enforce a TikTok ban if security demands weren’t met. This sentiment aligns with broader discussions on platforms, where users debate the deals’ impact on innovation and market access.

Analysts from Reuters point out that while the agreements represent a rare breakthrough, they build on earlier frameworks established in Madrid talks, suggesting a pattern of incremental progress rather than sweeping reforms.

Looking ahead, the convergence of trade policy and tech regulation in this context may set precedents for future U.S. engagements with global rivals, influencing everything from app governance to tariff strategies in an increasingly digital economy.

Critics, however, warn that without ironclad verifications, these pacts could unravel, as evidenced by past trade war cycles. Bessent’s assurances, echoed in CNBC interviews, position the administration as having achieved concessions through strength, but the proof will lie in implementation.

Ultimately, as Trump and Xi prepare to “consummate” the deals, per Bessent’s phrasing in New York Times accounts, the outcomes could redefine bilateral ties for years to come, offering a blueprint for balancing economic rivalry with cooperative gains.