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U.S. and China Seal Framework to Avert 100% Tariffs and Pause Rare‑Earth Curbs

Leaders are expected to review a preliminary consensus that still requires internal approvals.

Overview

  • After two days of talks in Kuala Lumpur, Treasury Secretary Scott Bessent said the threatened additional 100% tariff on Chinese goods is effectively off the table.
  • Bessent said Beijing would delay its expanded rare‑earth export controls for about a year while it reexamines the policy.
  • The framework includes substantial Chinese purchases of U.S. soybeans and cooperation on precursor chemicals tied to the fentanyl crisis.
  • Bessent said the parties have ironed out details for a U.S. TikTok transaction for Trump and Xi to finalize at their meeting in South Korea on Thursday.
  • Chinese negotiators described the outcome as a preliminary consensus pending internal approvals, with an extension of the Nov. 10 tariff truce under discussion.