The United States and China have agreed on a “framework” for a new trade deal aimed at easing tensions and averting a planned 100% U.S. tariff on Chinese goods, Treasury Secretary Scott Bessent announced Sunday.
Speaking on NBC News’ Meet the Press, Bessent said that after two days of negotiations with Beijing’s top trade officials, both sides were ready to move forward. The proposed framework is expected to form the basis of a meeting later this week between President Donald Trump and Chinese President Xi Jinping.
The meeting is intended to prevent the imposition of additional tariffs scheduled to take effect on November 1 if China proceeds with restrictions on exports of rare earth minerals — key materials used in electronics and defense technologies.
“This could be a very substantial agreement that prevents those tariffs and opens the door to broader discussions,” Bessent said. “President Trump gave me significant negotiating leverage with the tariff threat, and we’ve used that to reach a meaningful framework.”
Bessent added that he expects China to suspend plans for export controls on rare earth elements, noting that the agreement could mark a pivotal step toward stabilizing relations between the world’s two largest economies.
China’s dominance in the production and processing of rare earth minerals has long been a concern for Washington. The Trump administration views Beijing’s potential restrictions as a threat to global supply chains, particularly for critical technologies.
Over the weekend, Bessent and U.S. Trade Representative Jamieson Greer met in Malaysia with Chinese Vice Premier He Lifeng and China’s top trade negotiator, Li Chenggang. Following the talks, Li confirmed that both sides had reached “a preliminary consensus” on extending their trade truce and discussed issues including fentanyl, export controls, and agricultural purchases.
Trump, currently on a five-day trip to Asia, arrived in Malaysia on Sunday for an Association of Southeast Asian Nations (ASEAN) summit. He is expected to meet President Xi in South Korea later this week, followed by a possible visit to Beijing early next year.
“I think we’re going to have a deal with China,” Trump told reporters, adding that future meetings could also take place in the United States, either in Washington or at his Mar-a-Lago estate.
Bessent said that the administration hopes to use the upcoming talks to address the U.S. opioid crisis, particularly the flow of fentanyl precursors from China. “I think we’ll be able to discuss ways they can help us get this terrible fentanyl crisis under control,” he said. “We’re also looking forward to talking about substantial soybean and agricultural purchases that will benefit American farmers.”
China, meanwhile, maintains that the U.S. fentanyl crisis is driven by domestic demand, though officials in Beijing have expressed willingness to cooperate on enforcement measures.
If finalized, the trade framework could mark one of the most significant de-escalations in U.S.-China economic relations since tensions flared under Trump’s tariff policy, signaling a cautious step toward renewed stability in global trade.
