US, China reach “substantial” framework deal on rare earths and tariffs
U.S. Treasury Secretary Scott Bessent said on Sunday he has reached a “very substantial framework” with Chinese Vice Premier He Lifeng that will avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China’s rare earths export controls.
Bessent said during the taping of an interview with NBC’s “Meet the Press” program that the framework reached in Kuala Lumpur, Malaysia will allow President Donald Trump and Chinese President Xi Jinping to discuss further trade cooperation next week.
The agenda would include more balanced U.S.-China trade, Chinese purchases of American soybeans and other agricultural products, and getting the U.S. fentanyl crisis under control.
Asked if he anticipated that the U.S. would proceed with Trump’s threat of 100% tariffs on Chinese goods, Bessent said: “No, I’m not, and I’m also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed.”
Bessent added that final terms would be decided by the two leaders.
Meanwhile, China’s top trade negotiator Li Chenggang announced that the two sides reached a preliminary consensus on a range of issues including the extension of their trade truce, fentanyl and export controls.
Earlier, Trump said he was confident of hashing out a deal with President Xi Jinping, whom he is expected to meet next week, after the fifth round of trade talks concluded on the sidelines of the ASEAN summit in Kuala Lumpur.
