China Reaches 'Basic Consensus' With US On Trade Deal Ahead Of Trump-Xi Meet: '100% Tariffs Off The Table'
US Treasury Secretary Scott Bessent told CBS News that President Trump’s threat to impose an additional 100% tariff on Chinese goods “has gone away.”
China and the United States have reached what Beijing describes as a "basic consensus" on a potential trade agreement, just days before a crucial meeting between President Donald Trump and Chinese President Xi Jinping.
The breakthrough came after two days of intensive negotiations between Chinese Vice Premier He Lifeng and a US delegation led by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. The talks took place on the sidelines of the ASEAN summit in Kuala Lumpur, according to China’s official news agency Xinhua.
Lifeng called the discussions “candid, in-depth, and constructive,” adding that both sides reviewed a wide range of critical issues, inclduing tariffs, export controls, agricultural trade, and joint efforts on fentanyl-related enforcement. He emphasised that the foundation of economic ties between Beijing and Washington lies in “mutual benefit and win-win results,” noting, “both countries gain from cooperation and lose from confrontation.”
US Eases Tariff Threat After Talks
Following the discussions, Treasury Secretary Scott Bessent told CBS News that President Trump’s threat to impose an additional 100% tariff on Chinese goods “has gone away.” The proposed tariffs were initially part of Washington’s response to Beijing’s new export restrictions on rare earth materials, vital components for industries such as electronics and defense.
“We had a very good two-day meeting,” Bessent said. “So it would be an extra 100% from where we are now, and I believe that 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.”
CNN reported that both nations are now focused on de-escalating their trade friction, which had intensified earlier this month. The additional tariffs, first announced by President Trump, were expected to take effect on November 1 before the apparent breakthrough.
Trump Heads To Asia Summit
Trump arrived in Malaysia on Sunday to attend the ASEAN summit, which is the first stop on his five-day Asia tour. The trip will conclude with his highly anticipated meeting with President Xi Jinping in South Korea on October 30.
Speaking to reporters ahead of the talks, Trump voiced optimism about the ongoing negotiations. “I think we’re going to have a deal with China,” he said.
The latest discussions come amid growing global concern over China’s new export limits on rare earth magnets and minerals, which have sparked shortages across key manufacturing sectors.
Despite recent cooperation efforts in Geneva earlier this year, both countries have continued to impose sanctions and industry restrictions, highlighting the fragile balance in their trade relationship.
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