U.S.-China Trade Talks: Framework Reached to Suspend Tariffs and Delay Rare Earth Controls

Key Takeaways from the Trade Talks

1. Framework Reached

Both sides reached a preliminary framework that sets the stage for a formal trade deal between Trump and Xi. The move signals a major step in easing U.S.-China economic tensions.

2. Tariffs Suspended

According to Treasury Secretary Scott Bessent, Trump’s proposed 100% tariffs on Chinese imports—originally scheduled to begin on November 1—are now officially “off the table.”

3. Rare Earth Controls Delayed

China is expected to delay the launch of its rare earth minerals and magnets export licensing regime by one year, giving both economies more breathing room.

4. Next Steps

Trump and Xi will meet on Thursday during the APEC Summit to finalize the deal. Beijing has yet to confirm the meeting publicly.

5. Progress in Negotiations

This was the fifth in-person round of trade talks since May, involving U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng. Chinese negotiator Li Chenggang described the discussions as a “preliminary consensus.”

6. Extension of the Truce

Bessent expects the current tariff truce to extend beyond its November 10 deadline. He also confirmed that China will resume U.S. soybean purchases after halting imports in September.

7. TikTok Deal Finalized

The U.S. and China have reached a final TikTok ownership deal. Under the agreement, U.S. investors will control a majority stake in TikTok’s U.S. operations, while ByteDance will retain less than 20% ownership. The details will be officially announced in South Korea.

8. Other Key Issues

Trump is also expected to discuss Taiwan, soybean exports, the detention of Hong Kong media tycoon Jimmy Lai, and U.S.-Russia cooperation during his meeting with Xi.

Why This Matters

The new framework could ease trade tensions between the world’s two largest economies. By removing tariff threats and delaying export restrictions, both nations aim to stabilize global supply chains and improve investor confidence.

Frequently Asked Questions (FAQs)

What was agreed in the latest U.S.-China trade talks?

The U.S. and China reached a framework deal to suspend new U.S. tariffs and delay China’s rare earth export controls for one year.

When will Trump and Xi finalize the trade deal?

The deal is expected to be confirmed on Thursday during the APEC Summit in Gyeongju, South Korea.

What does the TikTok deal include?

U.S. investors will hold a majority stake in TikTok’s U.S. operations, while China’s ByteDance will retain less than 20% ownership.

Will the tariff truce continue?

Yes, the U.S. Treasury expects the current truce to be extended beyond November 10, preventing new tariff hikes.