US and China Establish Framework for Trade Deal Treasury Secretary Announces

The U.S. and China are on the brink of a significant trade agreement aimed at preventing new tariffs that could impact global markets. This development follows recent negotiations in Malaysia between U.S. Treasury Secretary Scott Bessent and Chinese trade officials.

Framework for Trade Deal Announced by Treasury Secretary

According to Bessent, a structured framework is set to facilitate discussions between President Donald Trump and Chinese President Xi Jinping. This meeting is expected to occur later this week, and it comes after two days of productive negotiations.

Averting Tariffs and Export Controls

The main objective of this framework is to avert the implementation of a 100% U.S. tariff on Chinese goods. The tariffs, initially set to begin on November 1, were a response to China’s proposed restrictions on rare earth minerals. These minerals are essential for various technologies, including electronic devices and defense systems.

• Critical Dates:
• November 1: Potential start date for new U.S. tariffs.
• February 17: Lunar New Year, potential timeframe for Trump’s visit to Beijing.

Outcomes of Negotiations

Bessent noted that the threat of tariffs has provided leverage during discussions, leading to a notable consensus on multiple issues. One of the primary topics is the control of fentanyl, a substance linked to the opioid crisis in the U.S.

China, through its top trade negotiator Li Chenggang, acknowledged that the two countries reached preliminary agreements on extending their trade truce and addressing the fentanyl issue. The commitments include possible increases in U.S. agricultural exports, particularly soybeans.

Future Meetings Planned

President Trump is on a five-day tour in Asia, which will include further conversations with Xi in South Korea. Trump expressed optimism about the potential deal, signaling significant future engagements in both China and the U.S. during his remarks after the meetings.

• Possible Locations for Future Meetings:
• South Korea
• Washington, D.C.
• Mar-a-Lago, Florida

This evolving trade relationship has crucial implications for global economic stability, reflecting ongoing efforts to resolve tensions between two of the world’s largest economies. The next meetings will be closely watched as they aim to solidify a lasting agreement and address key issues in U.S.-China trade relations.