The Trump administration has expressed readiness to resume trade talks with China, even as new tariff threats heighten tensions between the world’s two largest economies, Bloomberg reported.

China’s Ministry of Commerce on Sunday urged Washington to drop its “threats of high tariffs,” warning that it would “resolutely take corresponding measures” if the US moves forward. The statement came after President Donald Trump announced plans to impose tariffs of up to 100 percent on Chinese goods and restrict certain software exports, starting November 1.

Trump said the November deadline allows time for negotiations. “Let’s see what happens,” he told reporters aboard Air Force One. “For me, November 1 is an eternity.”

Vice President JD Vance called on Beijing to “choose the path of reason,” arguing that Washington holds “far more cards than the People’s Republic of China.” He said the administration’s response will depend on China’s next steps.

Despite the sharp rhetoric, Trump appeared to leave room for compromise, writing on Truth Social that Chinese President Xi Jinping “just had a bad moment” and that “the U.S.A. wants to help China, not hurt it.”

The dispute escalated after Beijing announced new export controls on key goods, prompting US Trade Representative Jamieson Greer to accuse China of a “power grab” that “won’t be tolerated.” Still, he said the markets are likely to stabilise since the new measures have yet to take effect.

Goldman Sachs economists Jan Hatzius and Andrew Tilton said in a note that while the latest tensions widen possible outcomes, both sides are likely to “pull back on the most aggressive policies” and extend the tariff pause agreed in May.

The two countries raised tariffs to as high as 125 percent earlier this year before reaching a temporary truce that reduced them to current levels—10 percent on US exports to China and around 30 percent on Chinese imports to the US.