Key Takeaways
- US and China reach framework agreement days before 157% tariffs were set to take effect
- Threat of additional 100% tariffs “effectively off the table” according to US officials
- Deal includes discussions on rare earth exports, soybean purchases, and tariff extensions
- Trump-Xi meeting expected to finalize the agreement
Top US and Chinese trade negotiators have reached a preliminary framework for a trade deal, just days before devastating 157% tariffs were scheduled to be imposed. The breakthrough came during the ASEAN Summit in Kuala Lumpur, where both sides described the talks as productive and comprehensive.
US Trade Representative Jamieson Greer confirmed the progress, stating they are “moving forward to the final details” for leaders to review. Chinese negotiator Li Chenggang characterized the discussions as “candid and in-depth,” revealing a “preliminary consensus” had been achieved.
What Was Discussed in the Trade Talks?
The negotiations covered multiple critical areas including bilateral trade, export controls, tariff extensions, and cooperation on combating fentanyl trafficking. Both sides also discussed extending existing tariff truces and addressing China’s restrictions on rare earth exports.
“We talked about extending the truce, we talked about rare earths, of course, we talked about all kinds of topics,” Greer said, as per NYT.
Are the 157% Tariffs Still Happening?
US Treasury Secretary Scott Bessent confirmed the substantial framework and delivered significant news: the additional 100% tariffs scheduled for November 1 are “effectively off the table.” This removes the immediate threat of escalated trade tensions.
In exchange, the US expects substantial soybean purchases from China and a one-year deferral on rare earth export controls. The US will maintain its existing export controls directed at China.
“So I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime,” Bessent said in the interview, as per Bloomberg.
President Trump expressed optimism about reaching a “good deal with China” during his ASEAN Summit appearance, noting both countries want to make a deal. Further leader-level meetings are expected in both China and the US to finalize the agreement.
