The United States and China have agreed on the outline of a potential trade deal that is expected to be finalized when President Donald Trump and Chinese President Xi Jinping meet later this week in South Korea, US Treasury Secretary Scott Bessent has confirmed.
Bessent told CBS News that the framework includes a settlement over the US operations of TikTok and a suspension of China’s newly tightened export controls on rare earth minerals. He also suggested that the threatened 100% tariffs on Chinese goods will likely not be implemented.
Both nations appear keen to prevent their long-running trade conflict from escalating further. Bessent held discussions with senior Chinese officials on the sidelines of the ASEAN summit in Malaysia — where Trump is currently touring — and described the negotiations as productive. Beijing likewise said the talks were “constructive” and that both sides had reached a “basic consensus” on addressing key concerns.
Tariffs and Rare Earths
Since his return to office, Trump has imposed or threatened sweeping tariffs on foreign imports, arguing that the measures bolster US industry and jobs. China has countered with policies of its own, though both sides agreed to freeze new levies while pursuing a trade settlement.
Earlier this month, Trump warned of an additional 100% tariff on Chinese products after Beijing reinforced export restrictions on rare earth elements — materials vital to the production of electronics, renewable energy systems, and defence technology. China processes about 90% of the world’s rare earth supply.
According to Bessent, China will delay the restrictions for one year while re-evaluating the policy.
Soybean Purchases Set to Resume
China — the world’s top buyer of soybeans — halted major purchases from the US earlier in the dispute, severely impacting American farmers. Without providing specifics, Bessent suggested that significant imports could soon restart under the new framework.
He said the deal would provide “multi-year” reassurance for US growers who have been hit hard by the trade freeze.
TikTok Deal Nears Final Approval
Bessent also confirmed that an agreement has been reached over TikTok’s US business, clearing the way for Trump and Xi to formally seal the deal during their meeting.
For national security reasons, the US has demanded the platform’s American operations be effectively separated from Chinese ownership. Under the current proposal, US companies will gain control of TikTok’s crucial recommendation algorithm and Americans will hold six of seven board seats.
Though Trump once called for the app to be banned, he has increasingly used TikTok to reach younger voters during his 2024 re-election campaign.
Strengthening Economic Ties Across Southeast Asia
Washington also unveiled several new trade initiatives in Southeast Asia — a region heavily reliant on access to the US market and deeply affected by Trump’s tariff policies.
The US signed agreements on critical minerals with both Malaysia and Thailand, expanding access to strategic resources outside China. It also announced broader trade frameworks with Cambodia and Thailand, and what officials described as “unprecedented” market access with Vietnam.
Hanoi agreed to purchase more than $8 billion worth of Boeing aircraft and step up imports of US agricultural products, reflecting a deepening economic partnership.
