(NewsNation) — Treasury Secretary Scott Bessent announced Sunday that the U.S. and China have reached a “substantial framework” for a trade agreement that could help avoid 100 percent tariffs on Chinese goods.
Earlier this month, President Trump threatened to impose 100 percent tariffs on Chinese goods as of Nov. 1, in response to China tightening its control over rare earth minerals. Speaking with NBC’s “Meet the Press,” Bessent says he no longer anticipates that will happen.
“President Trump gave me a great deal of negotiating leverage with the threat of the 100 percent tariffs on November 1st,” Bessent said. “And I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
Trade tensions cool as Trump and President Xi prepare to meet
Bessent highlighted rare earth minerals as a major focus point.
“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. “My counterpart, the vice premier, and I have set the framework, and it will be up to the two leaders to discuss the final terms.”
This comes as President Trump prepares to meet with Chinese President Xi Jinping this week during his multi-nation trade trip in Asia.
“We’re going to do well with China, we’ll meet with President Xi in South Korea, and I think we’ll have a good deal with them,” Trump said during the ASEAN summit on Sunday. “They want to make a deal, and we want to make a deal.”
The president suggested that future meetings between himself and Xi would take place between in the U.S. in either Washington or Mar-a-Lago in Florida.
