In a remarkable pivot, China has signalled willingness to return to the negotiating table after US President Donald Trump floated a sweeping 100 percent tariff on Chinese goods. The move, if enforced, would amount to the sharpest trade escalation in recent memory but Beijing is already pushing for de-escalation. 

The announcement followed a video call between Beijing’s top economic negotiator, Vice Premier He Lifeng, and US Treasury Secretary Scott Bessent, described by state media as “candid, in-depth and constructive exchanges.” Chinese authorities, through the commerce ministry, expressed readiness to hold talks “as soon as possible.” 

Trump’s proposed tariff plan came in reaction to China’s newly imposed export controls on rare earth minerals, a strategic sector crucial for technologies from electronics to defense. In response, the US threatened to impose an additional 100 percent duty above existing levies. That would bring total tariffs on many Chinese exports to 130 percent. 

But the US leader has since tempered his earlier stance. In media interviews, he acknowledged that such steep tariffs may not be sustainable economically. “It’s not sustainable,” he admitted, while also highlighting that Beijing’s actions “forced him to do it

From China’s perspective, the sudden tariff hike represented a dangerous escalation one that could destabilize global supply chains and impact economies worldwide. Chinese officials warned of potential retaliation and accused Washington of choosing coercive trade tactics over genuine negotiation. 

Still, both sides appear poised for diplomacy rather than confrontation. US Treasury Secretary Bessent reiterated that high-level talks possibly between Trump and Chinese President Xi Jinping could still take place. He also hinted that the Asia-Pacific Economic Cooperation (APEC) summit might provide a venue for face to face engagement, despite earlier public statements that the meeting might not happen. 

Markets and analysts are watching closely. On one hand, a full-blown trade war would disrupt global trade flows and hit consumer prices; on the other, failure to reach a compromise could signal a prolonged standoff. The balance of power lies in whether both sides can gain political cover to retreat from the brink without losing face.

If these talks do restart, they’ll need to address not just tariffs and trade imbalances but strategic issues such as technology transfers, export controls, and supply chain vulnerabilities. The coming weeks may well determine whether the world witnesses a wholesale breakdown in U.S. China economic ties or merely another high-stakes negotiation in an era of intensifying rivalry.