Overview

• U.S. Treasury Secretary Scott Bessent said there was a significant de-escalation over the weekend, adding the 100% tariff "does not need to happen" and that a Trump–Xi meeting in South Korea remains likely.
• The flare-up began after Beijing expanded export controls on rare-earth materials and President Donald Trump announced a 100% tariff to take effect on November 1, which sparked a sharp sell-off on Friday and a partial market rebound on Monday.
• China’s September trade beat expectations, with exports up 8.3% year over year and imports up 7.4%, supported by stronger sales to the European Union, Southeast Asia and Africa that point to diversification of markets.
• At the IMF and World Bank meetings in Washington, Managing Director Kristalina Georgieva warned of financial stability risks, including the potential for a sharp correction in AI-related equities.
• Bessent said Washington is coordinating with allies in Europe, India and Asian democracies and will not accept China’s new licensing demands tied to rare-earths, while keeping additional U.S. responses on the table if talks stall.