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U.S. and China Outline Preliminary Trade Framework That Pauses 100% Tariff Threat and Rare‑Earth Curbs

The provisional deal heads to a TrumpXi meeting next week for leader-level review.

Overview

  • Negotiators in Kuala Lumpur said the framework spans export controls, reciprocal tariff extensions, agricultural purchases, fentanyl measures, and shipping and port fees.
  • Treasury Secretary Scott Bessent said the understanding would avert President Trump’s planned 100% tariffs, and he told ABC he expects China to delay new rare-earth rules for a year.
  • U.S. trade representative Jamieson Greer said teams are finalizing details for leaders to consider, while China’s Li Chenggang described candid talks and a preliminary consensus.
  • Officials emphasized the arrangement is not a final deal and still requires domestic approvals and leader sign-off, with timing, terms, and enforcement unresolved.
  • Markets reacted to the headlines, with Bitcoin briefly topping about $113,000 and crypto liquidations exceeding roughly $657 million, according to CoinDesk-cited data.