U.S. Treasury Secretary Scott Bessent expressed optimism on Thursday that upcoming trade discussions with China could deliver a ‘big breakthrough,’ while also signalling new aid measures for American soybean farmers.
Speaking in an interview with CNBC, Bessent highlighted an anticipated meeting later this month in South Korea between U.S. President Donald Trump and Chinese President Xi Jinping, which he described as the most significant development to watch. He also said his own negotiations with Chinese Vice-Premier He Lifeng “should show a pretty big breakthrough.”
The upbeat comments come as Washington and Beijing work to ease tensions after months of tariff battles. Both governments agreed earlier this year to scale back triple-digit duties imposed in April and May, with a ceasefire in place until November.
Since May, Bessent has led the U.S. delegation in four rounds of talks with He across Europe, including in Zurich, London, Stockholm, and Madrid. Further meetings are expected in the coming weeks.
Despite the optimism, trade disputes remain. On Monday, the Trump administration imposed new tariffs on Chinese furniture imports and expanded a blacklist of Chinese companies. Sources cited by the Post said the White House is “very comfortable” with the current tariff levels, which continue to generate revenue aimed at addressing America’s fiscal deficit. Ongoing talks have also touched on wider issues, including TikTok, subsidies, export controls, and the trade deficit.
Meanwhile, China’s exports to the U.S. continued to shrink sharply in August, falling 33.1% year on year after a 21.7% decline in July. Yet China’s overall outbound shipments rose 4.4% to $321.8 billion, underscoring its reduced reliance on the American market.
The trade standoff has particularly strained U.S. farmers, with soybean growers bearing the brunt of China’s decision to suspend purchases. The pause, widely viewed as a negotiating tactic, has cost billions of dollars in lost sales, with Beijing shifting much of its buying to Brazil and Argentina.
President Trump, who has pledged to defend American agriculture, said soybeans would be central to his discussions with Xi at the upcoming APEC summit. He has floated a potential aid package of between $10 billion and $14 billion, funded by tariff revenues, to support soybean producers and other farmers.
“The Soybean Farmers of our Country are being hurt because China is, for ‘negotiating’ reasons only, not buying,” Trump wrote on Truth Social.
Bessent, acknowledging the challenges, noted that this year’s soybean yield is so large the U.S. “may run out of storage.” He confirmed a meeting with Trump and Agriculture Secretary Brooke Rollins this week, adding that an announcement on support measures for farmers is expected on Tuesday.
Trump has also signalled that a soybean purchase agreement with China, if reached during talks with Xi, could reduce or alter the scope of planned aid.
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