Optimism Builds for Trump-Xi Summit Amid Tariff Tensions
Markets brace for high-stakes diplomacy as President TRUMP and Chinese President Xi Jinping prepare for their first face-to-face meeting of the administration. The Thursday summit follows two phone calls since September, with prediction markets assigning a 93% probability to the event occurring.
Treasury Secretary Scott Bessent signaled potential breakthroughs after weekend negotiations in Malaysia, claiming a "very substantial framework" could avert planned tariff escalations. The threatened 100% duty on Chinese imports—which WOULD push some combined tariffs beyond 150%—now appears less likely according to senior officials.
Critical negotiation points include semiconductors, rare earth minerals, and energy trade. Trump acknowledged mutual concessions would be necessary during remarks aboard Air Force One, while notably softening his rhetoric: "I wouldn't like to see it [tariffs]."
