US, China reach ‘substantial framework’ to avert new tariffs, says Treasury Secretary Bessent
Treasury Secretary Scott Bessent says recent Malaysia talks set stage for breakthrough meeting between Trump and Xi at upcoming APEC summit
US, Oct 27 : US Treasury Secretary Scott Bessent on Sunday said that the United States and China have reached a substantial framework agreement aimed at averting a steep 100 per cent tariff on Chinese imports.
“I think we’ve reached a substantial framework for the two leaders who will meet next Thursday… that tariffs will be averted,” Bessent told ABC News from Kuala Lumpur, Malaysia, where President Donald Trump is on a weeklong Asia diplomacy tour.
The US President is expected to hold a high level meeting with Chinese President Xi Jinping later this week in South Korea, marking a critical moment in efforts to ease trade tensions between the world’s two largest economies.
According to Chinese media, China’s International Trade Representative Li Chenggang confirmed that both sides had reached a “preliminary consensus” on trade issues during discussions in Malaysia.
While Bessent refrained from revealing details of the framework, he told NBC News that he anticipates the US will gain “some kind of deferral” on rare-earth export controls, which have been a central flashpoint in the trade dispute.
“This framework sets up Trump and Xi to have a very productive meeting,” Bessent said. “I think it will be fantastic for US citizens, for US farmers, and for our country in general.”
He further indicated that escalation in tariffs is now effectively off the table following “very good” trade talks with Chinese counterparts.
President Trump had earlier threatened to impose an additional 100 per cent tariff starting November 1 in response to China’s export control measures on critical minerals. However, Bessent told CBS News that the tariff threat has now “gone away” after two days of discussions in Malaysia.
“We had a very good two day meeting… I believe that the threat of the 100 per cent tariff has gone away, as has the threat of China’s immediate imposition of a worldwide export control regime,” he said.
Meanwhile, Chinese state media reported that delegations led by Vice Premier He Lifeng and US officials including Treasury Secretary Bessent and Trade Representative Jameson Greer reached a “basic consensus” on resolving key trade concerns.
The issues discussed included maritime logistics sanctions, reciprocal tariffs, fentanyl trade controls, agricultural imports, and high tech export restrictions all of which have fueled recent tensions.
“Both sides agreed to further finalise specific details and fulfil their respective domestic approval processes,” the Chinese statement noted.
The progress comes just days before the anticipated Trump Xi meeting on the sidelines of the APEC summit in South Korea, where both nations are expected to formalise parts of the new trade framework and outline next steps toward stabilising bilateral economic ties.
