China appears poised to strike a trade deal with the US after months of tit-for-tat tariff measures that have left global markets reeling. Representatives from both countries reached a “basic consensus” on Sunday afternoon following “in-depth and candid discussions” amid the ASEAN Summit. US President Donald Trump is set to meet with Xi Jinping in a few days. He also held talks with Brazilian President Luiz Inácio Lula da Silva to jumpstart the bilateral negotiation process. But with Prime Minister Narendra Modi attending the event virtually, India appears to be following a slightly different strategy.
US says 100% tariff ‘off the table’ for China
China and the United States have reached a “basic consensus” on how to handle their respective trade concerns after two days of talks in Kuala Lumpur, Chinese Vice Premier He Lifeng said on Sunday, as per Xinhua. He Lifeng met with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer over the weekend on the sidelines of the Association of Southeast Asian Nations summit in Kuala Lumpur, describing the discussions as “candid, in-depth, and constructive.” The talks covered a wide range of issues, including tariffs, export controls, trade in agricultural products, and cooperation on fentanyl-related enforcement.
Brazil-US ties improve
Brazil President Luiz Inácio Lula da Silva held talks with Donald Trump on Sunday with officials indicating that it was a “happy” discussion. The Brazilian FM said Trump had given instructions to start a bilateral negotiation process (likely to happen today). Trump reportedly told Lula that he admired the political career of the Brazilian leader.
Foreign Minister Mauro Vieira said the conversations would target tariff suspension, and indicated that Brazil would ask for the steep levies to be suspended during the negotiation process.