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U.S., China Outline Trade Framework That Removes 100% Tariff Threat

The Kuala Lumpur understanding now moves to domestic reviews before a Trump–Xi meeting in South Korea that could formalize the package.

Overview

  • U.S. Treasury Secretary Scott Bessent said the additional 100% tariffs on Chinese imports are effectively off the table after two days of talks in Malaysia.
  • Negotiators signaled China would delay its new rare‑earth export controls by about a year as the policy is reexamined.
  • The preliminary framework spans export controls, reciprocal tariffs, soybean purchases, fentanyl cooperation, shipping and port fees, and a path to finalize the TikTok deal.
  • Officials stressed the package is provisional and requires internal approval on both sides before leader‑level review later this week.
  • Risk assets rose on the de‑escalation, with Bitcoin near $113,800 and the total crypto market value around $3.9 trillion, according to market data.