Kuala Lumpur: In a major breakthrough that could defuse one of the most intense phases of trade tensions between Washington and Beijing, U.S. Treasury Secretary Scott Bessent announced that the United States and China have reached a “substantial framework” to prevent the imposition of a new 100 percent tariff on Chinese imports. Speaking on ABC’s This Week from Kuala Lumpur, Malaysia, where President Donald Trump has begun a weeklong Asian diplomacy tour, Bessent said the emerging deal would pave the way for a high-level meeting between Trump and Chinese President Xi Jinping later this week in South Korea.
“I think we’ve reached a substantial framework for the two leaders who will meet next Thursday … that tariffs will be averted,” Bessent told host George Stephanopoulos, expressing optimism that the agreement could stabilize relations between the world’s two largest economies. The remarks came after days of intense discussions between U.S. and Chinese negotiators on the sidelines of the ASEAN Summit, where trade and regional security have dominated the diplomatic agenda.
Chinese International Trade Representative Li Chenggang also confirmed progress from Beijing’s side, saying that both countries had reached a “preliminary consensus” on key trade issues during the Kuala Lumpur talks. Chinese state media described the tone of the discussions as “constructive and pragmatic,” signaling a shared willingness to ease tensions that have unsettled global markets and strained supply chains.
While Bessent did not provide specific details of the framework, he hinted at key areas of progress during an appearance on NBC’s Meet the Press. He said the U.S. expects to secure “some kind of deferral” on China’s rare earth export controls, a major sticking point in bilateral relations. Rare-earth minerals essential for high-tech manufacturing, electric vehicles, and defense technologies have been central to the trade standoff, with Washington accusing Beijing of using them as leverage in economic negotiations.
The Treasury Secretary described the framework as a “strong foundation” for what he expects will be a “very productive meeting” between Trump and Xi. “I think it will be fantastic for U.S. citizens, for U.S. farmers, and for our country in general,” Bessent said, emphasizing that the deal could bring significant relief to American industries affected by the tariff war. He added that the proposed framework represents “a shift from confrontation to coordination,” marking a crucial step toward restoring balance in global trade.
President Trump’s upcoming meeting with Xi in South Korea is expected to be the decisive stage in transforming the framework into a formal agreement. Analysts say that if the leaders finalize the terms, it could prevent a major escalation that would have seen tariffs on Chinese imports double, potentially rattling global markets. For Washington, the priority remains protecting U.S. technological and agricultural interests, while Beijing seeks guarantees against further tariff hikes and export restrictions.
The preliminary framework comes at a time when the global economy is grappling with inflationary pressures, sluggish growth, and persistent disruptions to trade logistics. A successful U.S.–China understanding could provide much-needed stability, not just to American farmers and manufacturers, but also to broader international supply chains.
While both governments are presenting the talks as a breakthrough, observers caution that a framework is not yet a final deal. Negotiators will continue working through complex details on technology access, agricultural exports, and industrial subsidies in the days ahead. However, for now, Bessent’s declaration signals a rare moment of optimism in a relationship that has been defined more by rivalry than reconciliation.
If President Trump and President Xi can transform this framework into a signed accord, it would mark one of the most significant diplomatic victories of the year and a critical step toward cooling the global trade climate that has been on edge for months.