Trade tension eases: US, China agree on framework to avert tariff escalation, says Bessent

Top US and Chinese economic officials have reached an agreement on a framework for a potential trade deal, paving the way for a meeting between US President Donald Trump and Chinese President Xi Jinping later this week. 

The announcement came after US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and chief negotiator Li Chenggang. This marked the fifth round of face-to-face discussions since May between the world’s two largest economies. 

“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent told reporters, adding that China appeared “ready to make a deal” following two days of negotiations. 

The agreement in principle comes as Trump has threatened to impose new 100% tariffs on Chinese goods starting November 1 if Beijing proceeds with restrictions on rare earth mineral exports. Bessent said the framework could help avoid such measures and potentially secure a deferral of China’s proposed export curbs. 

He said the upcoming Trump-Xi discussions will address a broad range of issues, including agricultural purchases from U.S. farmers, trade imbalances, and the US fentanyl crisis — a key driver behind earlier tariff hikes on Chinese imports. 

Chinese negotiator Li confirmed that both sides had reached a “preliminary consensus” and were moving to their internal approval processes. “The US position has been tough,” Li said, describing the talks as “intense but constructive.” 

The talks are seen as an effort to prevent a further escalation of the trade conflict, which has roiled global markets since Trump first threatened steep tariffs earlier this year. The current trade truce between the two nations, signed in May, is set to expire on November 10, but Bessent indicated that the White House may extend it pending the president’s decision. 

While Washington has confirmed plans for the Trump-Xi meeting, Beijing has yet to issue an official statement. Trump hinted at possible follow-up meetings in both China and the United States, saying, “We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the US, in either Washington or at Mar-a-Lago.” 

The development marks a potentially pivotal moment in US-China relations, with both sides signaling a renewed willingness to stabilise trade and economic ties after months of friction.