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U.S., China Set Trade Framework, Lifting Tariff Threat and Delaying Rare‑Earth Curbs

A preliminary framework removes the immediate tariff threat, pending sign-off by both leaders this week.

Overview

  • Treasury Secretary Scott Bessent said the planned 100% tariff hike on Chinese goods is off the table and that Beijing will defer rare‑earth export licensing for about a year.
  • Negotiators in Kuala Lumpur outlined a framework that U.S. officials say would extend the tariff truce and pause the latest round of trade escalation.
  • The package anticipates substantial Chinese purchases of U.S. soybeans and steps on fentanyl enforcement, with discussions also touching port-related fees.
  • Bessent said a final TikTok arrangement has been reached, with Trump and Xi expected to formalize it at their meeting in South Korea this week.
  • Washington said export controls on advanced semiconductors remain unchanged, while Chinese officials described only a preliminary consensus pending domestic approvals.