Top economic officials from the United States and China have outlined a framework for a potential trade deal that aims to pause the imposition of steeper tariffs and alter export controls on rare earth minerals. This development emerged from discussions held on the sidelines of the ASEAN Summit in Kuala Lumpur, according to US Treasury Secretary Scott Bessent. The agreement would prevent the activation of Donald Trump‘s proposed 100 percent tariffs on Chinese imports, which were set to take effect on November 1.
Bessent indicated that China is expected to delay the implementation of its licensing regime for rare earth minerals and magnets by a year as the policy undergoes reconsideration. While US officials expressed optimism about the talks, Chinese representatives maintained a more reserved stance, providing limited details on the discussions’ outcomes. The impending meeting between Trump and Xi Jinping on October 26, 2025, during the APEC summit in Gyeongju, South Korea, is a crucial point for finalizing the terms.
Bessent noted that the negotiations have paved the way for a “successful framework” for the leaders to consider. He emphasized the importance of extending a tariff truce beyond its expiration on November 10. Additionally, he mentioned that China could resume significant purchases of US soybeans, which had halted in September, favoring imports from Brazil and Argentina instead. “US soybean farmers will feel very good about what’s going on both for this season and the coming seasons,” Bessent stated in an interview with ABC.
US Trade Representative Jamieson Greer echoed Bessent’s remarks, highlighting that both nations have agreed to pause certain punitive measures and are working towards increasing access to rare earth materials from China. He reaffirmed that efforts are underway to balance the trade deficit by boosting US exports.
Chinese trade negotiator Li Chenggang described the discussions as having reached a “preliminary consensus,” indicating that both parties would now pursue internal approval processes. Li remarked, “The US position has been tough, whereas China has been firm in defending its own interests and rights.”
As Trump arrived in Malaysia for the ASEAN Summit, he expressed optimism about the negotiations, stating, “I think we’re going to have a deal with China.” His administration has previously threatened new tariffs in response to China’s expanded controls on rare earth exports, materials crucial for high-tech manufacturing, including electric vehicles and semiconductors.
The ongoing dialogue between US and Chinese officials has not only revolved around rare earths but also addressed broader trade expansion, the US fentanyl crisis, port entrance fees, and the potential transfer of TikTok to US ownership. Bessent mentioned that finalizing the TikTok deal remains a priority, with hopes that Trump and Xi can “consummate the transaction” in South Korea.
Following the ASEAN talks, Trump hinted at possible future meetings in both China and the United States, stating, “We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the US, in either Washington or at Mar-a-Lago.” This proactive approach indicates a willingness to maintain dialogue and address ongoing trade issues between the two largest economies in the world.
