Key points
- 100% tariffs delayed, rare earths licensing postponed
- Trump and Xi to finalise deal Thursday
- Tariff truce likely extended beyond November 10
KUALA LUMPUR: Top economic officials from the US and China met on Sunday to finalise the framework for a trade deal that US President Donald Trump and Chinese President Xi Jinping are expected to finalise later this week. The talks, held on the sidelines of the ASEAN Summit in Kuala Lumpur, helped avert the threat of Trump’s proposed 100% tariffs on Chinese imports, scheduled to take effect on November 1.
US Treasury Secretary Scott Bessent said that the discussions had led to an agreement to delay the tariffs and that China would postpone the implementation of its rare earths and magnets licensing regime for a year. However, Chinese officials were cautious, providing no details about the outcome of the meeting, reports Reuters.
Trump and Xi are set to meet on Thursday during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, to finalise the agreement. While the White House has confirmed the meeting, China has not officially announced it.
Strong basis for discussion
Bessent expressed optimism about the framework, noting that it provides a strong basis for discussion between the leaders. He also anticipated that the tariff truce would be extended beyond its expiration date on November 10 and that China would resume large-scale purchases of US soybeans, which it had paused in September.
US Trade Representative Jamieson Greer added that both countries had agreed to pause some punitive measures and aimed to increase access to rare earths from China, while addressing the trade imbalance.
Chinese trade negotiator Li Chenggang mentioned that the two sides had reached a “preliminary consensus” and would now go through their respective internal approval processes. Trump, speaking positively after the weekend talks, stated: “I think we’re going to have a deal with China.”
