Treasury Secretary Scott Bessent said that he reached a “substantial framework” for trade talks between the U.S. and China ahead of a meeting between President Donald Trump and Chinese President Xi Jinping on Thursday — potentially averting hefty tariffs on imported Chinese goods.
“I think we’ve reached a substantial framework for the two leaders who will meet in Korea next Thursday,” Bessent told ABC News’ “This Week” co-anchor Martha Raddatz. “The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their rare earth global export controls, so I think we have averted that,” adding that the tariffs on Chinese goods would be avoided if the deal holds.
On China’s threat to impose export controls on valuable rare earth minerals, Bessent said he believes “they are going to delay that for a year while they reexamine it.”
Bessent also alluded to a potential deal on American soybeans after China stopped purchasing them from the U.S. amid the ongoing trade war. According to the American Soybean Association, China is the largest buyer of American soybeans, purchasing more than 50% of U.S. exports in 2023 and 2024.
