US Treasury Secretary Announces Breakthrough in US-China Trade Negotiations Ahead of Trump-Xi Summit

US Treasury Secretary Scott Bessent has indicated a potential breakthrough in trade negotiations with China, suggesting that an imminent agreement could prevent the escalation of tariffs ahead of a crucial meeting between Presidents Donald Trump and Xi Jinping.

Speaking on ABC's "This Week" program, Bessent revealed that the United States has effectively removed its threat of implementing a 100 percent tariff increase on Chinese imports. In exchange, Beijing has agreed to postpone planned restrictions on its global rare earth exports.

"The tariffs will be averted," Bessent confirmed following his discussions with Chinese Vice Premier He Lifeng in Kuala Lumpur, Malaysia. Regarding China's proposed export controls, Bessent explained that China will "delay that for a year while they reexamine it."

These developments come as President Trump begins his Asia tour in Kuala Lumpur, which will conclude with a significant meeting with President Xi in South Korea. According to Bessent, both leaders are expected to formally announce the trade agreement during their upcoming summit.

Additionally, Bessent disclosed that China has committed to making "substantial" agricultural purchases from the United States. This aspect of the deal is particularly significant for American farmers, who represent a crucial political support base for Trump and have suffered considerable negative impacts from the ongoing tariff dispute between the two economic powers.

China, previously the largest buyer of US soybean exports, had completely suspended all orders as trade tensions intensified. "I believe, when the announcement of the deal with China is made public, that our soybean farmers will feel very good," Bessent stated, suggesting positive outcomes for the agricultural sector.