Treasury Secretary Scott Bessent confirms US-China trade deal 'framework' now in place

Scott Bessent said Donald Trump and Xi Jinping are close to finalizing an agreement to avert 100% tariffs on Chinese goods
UPDATED 3 HOURS AGO
Treasury Secretary Scott Bessent said that the United States and China had reached a 'framework' ahead of President Donald Trump's meeting with Chinese President Xi Jinping (Getty Images)
Treasury Secretary Scott Bessent said that the United States and China had reached a 'framework' ahead of President Donald Trump's meeting with Chinese President Xi Jinping (Getty Images)

WASHINGTON, DC: Treasury Secretary Scott Bessent revealed on Sunday, October 26, that the United States and China have reached a “framework” for a trade deal aimed at preventing a new round of steep tariffs on Chinese imports.

Speaking to NBC News’ 'Meet the Press', Bessent said Beijing was ready to make a deal “after two days of negotiations,” and that President Donald Trump and Chinese President Xi Jinping are expected to meet later this week in South Korea to formalize the agreement.

The talks come ahead of Trump’s threatened 100% tariffs on Chinese goods, set to take effect on November 1 if Beijing follows through on restricting exports of rare earth minerals.

ABU DHABI, UNITED ARAB EMIRATES - MAY 16: U.S. President Donald J. Trump speaks during a US-UAE Investment Forum alongside U.S. Secretary of the Treasury, Scott Bessent (R) at Qasr al-Watan, presidential palace of the United Arab Emirates, on May 16, 2025, in Abu Dhabi, United Arab Emirates. Trump is on the fourth and final day of his visit to the Gulf to underscore the strategic partnership between the United States and regional allies including the UAE, focusing on security and economic collaboration. (Photo by Win McNamee/Getty Images)
 President Donald J Trump speaks during a US-UAE Investment Forum alongside Secretary of the Treasury Scott Bessent at Qasr al-Watan, the presidential palace of the United Arab Emirates, on May 16, 2025, in Abu Dhabi, United Arab Emirates (Win McNamee/Getty Images)

Rare earth exports are at the center of the deal

China, which dominates the global supply of rare earth minerals critical to electronics and defense manufacturing, has alarmed Washington with threats to curb exports.

“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 said, calling the framework “very substantial.”



He added that Trump’s tariff threat provided “a great deal of negotiating leverage” that pushed both sides toward compromise.

"The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their rare earth global export controls, so I think we have averted that," he said to ABC News' 'This Week'.



Trump and Xi to meet during the Asia tour

Trump arrived in Malaysia on Sunday for a summit of the Association of Southeast Asian Nations (ASEAN), the first stop in a five-day tour expected to culminate in a face-to-face meeting with Xi Jinping in South Korea on Thursday.

Bessent said Trump could visit Beijing early next year, just ahead of the Lunar New Year, with a reciprocal meeting in Washington planned before Xi’s expected visit for the G20 summit next fall.



Drug and farm trade on the discussion table

Beyond tariffs, Bessent said the US plans to raise the issue of drug trafficking, which Trump has cited as a reason for imposing tariffs and to secure new Chinese commitments on agricultural purchases.

“I think we will be able to discuss them helping us get this terrible... crisis under control,” Bessent said.

“I think we are going to be able to discuss substantial soybean and [agriculture] purchases for our American farmers,” he added.

ABU NAKHLAH, QATAR - OCTOBER 25: U.S. President Donald Trump speaks to members of the media following a meeting with Emir of Qatar Sheikh Tamim ibn Hamad Al Thani and Prime Minister of Qatar Mohammed bin Abdulrahman bin Jassim bin Jaber Al Thani aboard Air Force One during a refueling stop at Al-Udeid Air Base on October 25, 2025 in Abu Nakhlah, Qatar. Trump is traveling to Malaysia for the Association of Southeast Asian Nations summit (ASEAN), Japan, and to South Korea for the Asia-Pacific Economic Cooperation forum (APEC). (Photo by Andrew Harnik/Getty Images)
President Donald Trump speaks to members of the media following a meeting with Emir of Qatar Sheikh Tamim ibn Hamad Al Thani and Prime Minister of Qatar Mohammed bin Abdul Rahman bin Jassim bin Jaber Al Thani aboard Air Force One during a refueling stop at Al-Udeid Air Base on October 25, 2025 in Abu Nakhlah, Qatar (Andrew Harnik/Getty Images)

Beijing confirms ‘preliminary consensus’

China’s top trade negotiator, Li Chenggang, confirmed that both sides had reached a “preliminary consensus” after talks in Malaysia.

The discussions, which included Bessent and US Trade Representative Jamieson Greer, covered the trade truce and export controls.

President Trump sounded optimistic after the talks.

He said, “I think we’re going to have a deal with China,” hinting that more meetings with Xi in both Beijing and Washington are on the horizon.

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