Top US and Chinese officials have reached a tentative trade framework that has successfully averted the looming threat of 100% US tariffs on Chinese imports, which were scheduled to take effect on November 1.
Thank you for reading this post, don't forget to subscribe!The framework, announced by US officials on Sunday, follows intense negotiations held on the sidelines of the ASEAN Summit in Kuala Lumpur. The agreement is designed to immediately de-escalate tensions and stabilize the turbulent trade relationship between the world’s two largest economies.
Key components of the tentative agreement include:
- Tariff Truce Extended: The immediate threat of 100% tariffs has been eliminated, and the existing tariff truce is expected to be extended beyond its November 10 expiration.
- Rare Earths Concession: China is expected to postpone for one year the rollout of its rare earths export licensing system, delaying restrictions on minerals critical to global technology and defense industries.
- Soybean Purchases: China is anticipated to resume large-scale purchases of US soybeans and other agricultural products, which had been halted in September.
US Treasury Secretary Scott Bessent called the development a “very substantial framework,” while US Trade Representative Jamieson Greer noted it was a step toward greater access to rare earths and a more balanced trade relationship.
The two sides also discussed other critical issues, including the transfer of TikTok to US ownership, cooperation on the US fentanyl crisis, and addressing trade issues like port fees.
The final agreement is set to be formalized and signed when President Donald Trump and Chinese President Xi Jinping meet on Thursday at the APEC Summit in Gyeongju, South Korea. Although US officials have confirmed the meeting, Beijing has only stated that both sides achieved a “preliminary consensus” and will now seek domestic approval for the deal.
