AI-generated image
The U.S. and China have sketched out a tentative trade agreement that would halt imminent American tariff hikes and push back Beijing’s planned restrictions on rare earth exports, U.S. officials said, ahead of a high-stakes meeting between Presidents Donald Trump and Xi Jinping this week.
U.S. Treasury Secretary Scott Bessent said talks held on the sidelines of the ASEAN Summit in Kuala Lumpur have eased trade tensions, removing the immediate threat of President Donald Trump’s planned 100% tariff hike on Chinese imports that was slated to take effect Nov. 1. He added that Beijing is expected to delay for a year the launch of a licensing system for rare earth minerals and magnets as it reconsiders the measure.
Beijing’s representatives offered no public confirmation of those details, signaling caution as negotiations enter a politically sensitive phase.
Trump and Xi are scheduled to meet Thursday on the sidelines of the APEC summit in Gyeongju, South Korea, where the two leaders would approve the agreement framework if it advances. The White House has confirmed the meeting; China has not yet formally announced it.
“We have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters after he and U.S. Trade Representative Jamieson Greer concluded their fifth round of in-person talks since May with Chinese Vice Premier He Lifeng and top negotiator Li Chenggang.
Bessent said he expects the current tariff truce—due to expire Nov. 10—to be extended, and signaled that China would resume significant purchases of U.S. soybeans. China halted U.S. buying in September and instead sourced cargoes from Brazil and Argentina.
“U.S. soybean farmers will feel very good about what’s going on both for this season and the coming seasons for several years,” he told ABC’s This Week.
Greer, speaking on Fox News Sunday, said both sides agreed to halt certain punitive actions and “found a path forward” to expand Chinese access to U.S. exports while improving America’s access to strategic minerals.
Li, speaking through an interpreter, characterized the outcome more cautiously. He said the countries reached a “preliminary consensus” that must now move through internal approval procedures.
“The U.S. position has been tough, whereas China has been firm in defending its own interests and rights,” Li said. “We engaged in constructive exchanges to explore solutions and arrangements to address concerns.”
Trump arrived in Malaysia on Sunday at the start of a five-day Asia visit that culminates in the expected face-to-face with Xi. The president struck an optimistic tone shortly after the weekend discussions. “I think we’re going to have a deal with China,” he said.
The negotiations come as Washington threatens sweeping retaliation over China’s expanded export controls on rare earth magnets and minerals—materials used in electric vehicles, semiconductors, and advanced weapons systems. China controls more than 90% of global supply, giving it significant leverage over international manufacturing chains.
The dueling measures risk unsettling a tentative six-month trade pause during which both nations scaled back tariff levels that had surged into triple-digit territory.
Beyond tariffs and materials security, negotiators also discussed trade expansion, U.S. port fees, the fentanyl crisis, and the stalled effort to shift TikTok to U.S. ownership.
Bessent told NBC’s Meet the Press that both sides still need to finalize the TikTok terms to allow Trump and Xi to “consummate the transaction” in South Korea.
