U.S., China Reportedly Near Deal to Avert 100% Tariffs Amid Trade Talks

The United States, under President Donald Trump's administration, has reached a significant framework agreement with China that is expected to avert the threatened additional 100% tariffs on Chinese goods set to take effect November 1. Treasury Secretary Scott Bessent confirmed that after recent productive talks in Malaysia with Chinese officials, the tariff increase is effectively off the table, and a deferral on China's rare earth export controls is anticipated. This framework sets the stage for an upcoming meeting between President Trump and Chinese President Xi Jinping, where further discussions on trade balance, soybeans, technology exports, and addressing the fentanyl crisis are planned. Both sides have indicated a preliminary consensus, with the agreement viewed as a move towards de-escalating trade tensions and stabilizing economic relations. The deal is seen as a relief for financial markets and businesses wary of the economic impact of escalating tariffs, while also reflecting a shift away from earlier aggressive tariff strategies. Future meetings are anticipated to continue negotiations, potentially including visits to Beijing and Washington to solidify ongoing cooperation.