National Economic Council Director Kevin Hassett said Sunday that he is “very comfortable” with a trade deal closing between the United States and China after the two sides meet Monday in London. Hassett’s comments on CBS’ “Face the Nation” come after President Donald Trump said last week that he had a “very good” conversation with Chinese leader Xi Jinping and that talks with China are “very far advanced.” Hassett said the United States is looking to restore the flow of “crucial” rare earth minerals, which are used in the manufacturing of electronics, to the same levels before early April, when the US-China trade war escalated. “Those exports of critical minerals have been getting released at a rate that is higher than it was, but not as high as we believe we agreed to in Geneva,” Hassett said. Commerce Secretary Howard Lutnick will lead the negotiations in London, along with Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, who in May led a weekend of the trade talks in Geneva. But tensions between the nations escalated weeks later after Trump posted on Truth Social that China “totally violated” its 90-day trade agreement, which had dialed back the tit-for-tat trade war. Under the agreement, the US temporarily lowered its overall tariffs on Chinese goods from 145% to 30%, while China cut its levies on American imports from 125% to 10%. Under the agreement, China said it would suspend or cancel its non-tariff countermeasures imposed on the United States since April 2. Part of Beijing’s retaliatory measures included export restrictions on some rare earth minerals, which are essential parts used in products such as iPhones, electric vehicles and fighter jets. Hassett touts tariff policy The Trump administration on April 2 imposed sweeping “reciprocal” tariffs on dozens of trading partners before pausing them for 90 days and lowering them to a 10% baseline. Hassett on Sunday declined to say what baseline tariffs could be in place moving forward as the Trump administration continues negotiations with trading partners ahead of the July 9 deadline. “You could be certain that there’s going to be some tariffs,” Hassett said. Lutnick told CNN’s “State of the Union” in May that “we will not go below 10%” and to expect that baseline rate for the foreseeable future. The Trump administration has so far announced only one trade deal, with the United Kingdom. The Trump administration has touted that other countries, particularly China, will bear the burden of tariffs. Businesses and economists have warned otherwise, spurring uncertainty about consumer spending and fears of a potential recession. Amid those concerns, US inflation slowed to its lowest rate in more than four years in April. The annual inflation rate fell from a 2.4% increase in March to 2.3% as consumer prices rose 0.2%, according to Consumer Price Index data. “All of our policies together are reducing inflation and helping reduce the deficit by getting revenue from other countries,” Hassett said. The Treasury Department reported that a record $16.3 billion was collected in gross customs duties in April, a sharp jump from the $8.75 billion that was collected in March. Since the start of the 2025 fiscal year, which began in October 2024, the United States has collected about $63.3 billion in gross customs duties — a more than $15 billion increase from the same period during the last fiscal year. The Congressional Budget Office estimates that increased tariff revenue, without accounting for effects on the US economy, could reduce total deficits by $3 trillion over the next decade. The US government deficit stood at about $2 trillion in 2024, or roughly 7% of gross domestic product, according to a June 2024 report by the CBO. Meanwhile, House Republicans’ sweeping bill to enact Trump’s policy agenda would pile another $3.8 trillion to the government’s $36 trillion debt pile, according to recent CBO estimates.
Trump economic adviser ‘very comfortable’ with a trade deal closing with China on Monday
TruthLens AI Suggested Headline:
"U.S. Officials Express Confidence in Upcoming Trade Deal with China"
CNN
6.2
TruthLens AI Summary
National Economic Council Director Kevin Hassett expressed optimism regarding the potential closure of a trade deal between the United States and China, with significant discussions scheduled in London on Monday. His comments came after President Trump reported a positive conversation with Chinese leader Xi Jinping, indicating that negotiations are 'very far advanced.' A key focus of the talks is on restoring the flow of rare earth minerals, essential components in electronics manufacturing, to pre-April levels. Hassett noted that while exports of these critical minerals have increased, they have not yet reached the agreed-upon levels established during negotiations in Geneva. The upcoming negotiations will be led by Commerce Secretary Howard Lutnick, with support from Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, who previously engaged in discussions in Geneva. However, tensions have resurfaced since Trump accused China of violating a prior trade agreement aimed at reducing tariffs and countermeasures between the two nations.
The trade agreement initially saw the U.S. lowering tariffs on Chinese goods while China reduced its tariffs on American imports. Nonetheless, the Trump administration's aggressive tariff policies have led to concerns over their long-term impact on the U.S. economy. Despite Hassett's assurance that some tariffs will remain, he refrained from specifying future tariff baselines. The administration has thus far only successfully negotiated a trade deal with the United Kingdom. Meanwhile, economists are wary of the implications of these tariffs on consumer spending and potential recession fears. In April, inflation rates slowed to their lowest in over four years, with a slight decrease noted in the Consumer Price Index. Moreover, the U.S. Treasury reported a significant increase in customs duties collected, indicating a rise in tariff revenue that could potentially alleviate projected deficits in the coming decade. However, the Congressional Budget Office warns that the proposed policy changes could further exacerbate the national debt situation, highlighting the complex economic landscape facing the Trump administration as it navigates these trade negotiations.
TruthLens AI Analysis
The article presents a positive outlook on the potential for a trade deal between the United States and China, driven by recent diplomatic talks. The emphasis on optimism from key figures in the Trump administration suggests a strategic intent to bolster public confidence in economic negotiations.
Intent Behind the Article
The primary goal seems to be to reassure investors and the public about the progress being made in trade discussions, particularly in light of previous tensions. By highlighting statements from Kevin Hassett about feeling "very comfortable" with the negotiations, the article aims to create an atmosphere of hopefulness regarding economic recovery and stability.
Public Sentiment and Perception
The article likely seeks to foster a positive perception of the Trump administration's handling of trade relations. By presenting the negotiations in a favorable light, it appeals to supporters who prioritize economic growth and a strong stance against China. This narrative frames the administration as actively working towards resolving issues that directly affect American businesses and consumers.
Potential Omissions
There is a lack of discussion about the ongoing complexities and risks involved in the negotiations, such as the potential for failure or further escalation of trade tensions. This omission could be seen as an attempt to downplay the challenges, steering public focus towards the optimistic statements made by officials.
Comparative Analysis with Other News
When compared to other news sources reporting on similar topics, this article stands out for its positive framing. Other outlets may provide a more balanced view that includes criticisms or concerns from economic analysts. By emphasizing confidence, this article aligns itself with a narrative that supports the current administration's policies.
Market and Economic Implications
The article could influence market sentiment positively, potentially leading to short-term gains in stock prices related to sectors impacted by trade agreements, such as technology and manufacturing. Companies involved in rare earth minerals or electronics manufacturing may particularly benefit from the anticipated trade progress.
Global Power Dynamics
The negotiations highlighted in the article are significant within the context of global trade dynamics. A successful agreement could shift power balances, especially regarding technology and resource control. The implications of trade relations extend beyond economics, influencing geopolitical strategies.
Use of AI in Article Creation
While it is difficult to determine definitively whether AI was employed in drafting the article, certain structural elements and language choices may suggest algorithmic influence, particularly in presenting a clear and persuasive narrative. AI models designed for news generation could have shaped the optimistic tone and focus on key figures' statements.
Manipulative Elements
There may be manipulative aspects present, particularly in the selective emphasis on positive commentary while downplaying the complexities of trade negotiations. This could serve to build support for the administration and its policies, appealing to a base that values strong leadership and economic progress.
In conclusion, the reliability of the article can be assessed as moderate. While it reports factual statements from credible sources, the selective emphasis on positive outcomes creates a narrative that may not fully encompass the complexities of the situation. The overall messaging aligns with intentions to bolster public confidence and support for the administration's trade policies.