Trump Says 'I Really Feel Good' Ahead of Historic Meeting With China's Xi

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00:00Chinese and U.S. trade negotiators lined up a number of deals over the weekend.

00:04Those talks come ahead of President Trump and President Xi's planned meeting this week in Korea.

00:10Bloomberg reporting that the agreements, however, did not resolve key fundamental issues,

00:14such as national security.

00:15Our Washington correspondent, Tyler Kendall, joins us now from Tokyo,

00:19where she's been traveling with President Trump.

00:21So, Tyler, what does it seem like was agreed upon in Malaysia over the weekend?

00:27Yeah, hey, Danny.

00:28Well, it seems like both sides are trying to tee up some diplomatic wins for President Trump

00:32and Chinese President Xi Jinping to finalize when they meet face-to-face on Thursday.

00:37But the broad feeling is that this is really just a simmering of recent tensions

00:41and a bid to keep the conversation going down the line for a potentially broader trade deal.

00:47This week, we will likely see at least an extension of the trade truce that's currently in place

00:51and set to expire on November 10th, with the U.S. effectively removing the threat

00:55of an additional 100 percent tariff off of the table, seemingly in exchange for Beijing,

01:01delaying and reviewing its recently unveiled export curves related to critical and rare earth minerals.

01:07The Treasury Secretary, Scott Besant, also says that China will resume its purchases of U.S. soybeans,

01:13so we have yet to get confirmation on how much and how quickly that will be done.

01:18I think it's worth pointing out that we heard from President Trump on Air Force One earlier today

01:22telling reporters that that recently launched Section 301 investigation into China's purchase obligations,

01:28including for agricultural products like soybeans from the first Phase One trade deal,

01:33that he's saying that that could be taken off the table completely,

01:36depending on how these talks go with Xi Jinping on Thursday.

01:40Now, there's a few other threads we're watching here, but everything that I just outlined really

01:44is a pullback of recent escalation from the last few weeks.

01:47But I have to say that I have my eye on that 20 percent tariff that is linked to fentanyl concerns,

01:53and it's been in place at this point for months, as both sides say that they are making progress on the issue.

01:59Matt and Danny, if we only see an extension of the current trade truce in place,

02:03our analysts at Bloomberg Economics say that the effective U.S. tariff rate against Chinese goods

02:08will remain at 40 percent, that is 25 percentage points higher than the global average.

02:14So while this will perhaps usher in a period of more certainty amid what has been a lot of heightened uncertainty,

02:20there are still a lot of big questions and areas to overcome.