The United States and China have reached an initial agreement on several contentious trade issues ahead of a key summit between President Donald Trump and Chinese President Xi Jinping later this week. This is seen as a potential de-escalation in tensions after weeks of trade threats and retaliatory measures.
100% Tariff On China
US Treasury Secretary Scott Bessent confirmed that Trump’s threat to impose 100% tariffs on Chinese goods has been effectively shelved. Speaking to CBS News, Bessent said, “We had a very good two-day meeting. I would believe that the – so it would be an extra 100% from where we are now, and I believe that is effectively off the table. I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime.”
The proposed tariffs had been part of Trump’s response to Beijing’s expanded export controls on rare earth materials, which are critical to industries such as electronics and defense.
US-China Areas of Consensus: Export Controls, Fentanyl, and Shipping Charges
A Chinese official speaking to Bloomberg confirmed that both sides reached an initial understanding on key issues, including export controls, fentanyl, and shipping charges. The progress marks a major turnaround after recent weeks, when China’s new export restrictions and Trump’s counter-threat of tariffs had stoked fears of a renewed full-scale trade war.
Bessent emphasized that the planned agreement would extend the current tariff truce, resolve disputes over the sale of TikTok, and secure the continued supply of rare earth magnets.
China to Increase Soybean Purchases From US
Bessent also noted that China plans to make “substantial” purchases of American soybeans. If confirmed by Beijing, this commitment would provide significant relief to US farmers, who have faced financial strain after China, their largest customer, reduced imports this season. Soybean purchases have reportedly been used by Beijing as a key bargaining tool throughout negotiations.
The upcoming summit between Trump and Xi will be their first face-to-face discussion since Trump’s return to the White House.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
