U.S.-China Agreement Prevents Tariff Increase, Halts Restrictions on Rare Earths

According to Treasury Secretary Scott Bessent, the United States and China have come to a tentative framework agreement that would prevent a threatened 100% tariff hike on Chinese goods and help ease disputes over rare earth mineral export restrictions. The agreement, reached during senior-level discussions in Malaysia, could pave the way for a possible meeting between President Donald Trump and Chinese President Xi Jinping at the APEC summit in South Korea later this month. As part of the deal, China will temporarily halt its planned rare earth export curbs, offering crucial support to U.S. technology and defense sectors that rely on these resources, and will resume buying U.S. soybeans—a trade that had completely stopped in September, as reported by a

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This framework comes after months of intensifying threats from both nations. Trump had stated he would implement 100% tariffs starting November 1 if China moved forward with its rare earth export limits, which the U.S. claims could disrupt global supply chains for semiconductors and high-tech manufacturing. In response, China has increased its oversight of rare earths—a sector where it holds significant processing power—and has suggested it may retaliate. The talks in Malaysia, led by Vice Premier He Lifeng and U.S. Trade Representative Jamieson Greer, tackled these matters along with issues related to agricultural trade and tariffs on semiconductors, according to a

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The timing of this agreement is particularly significant. It comes just before Trump’s anticipated meeting with Xi, which Beijing has not yet officially confirmed, and helps avoid immediate economic fallout ahead of the November 10 deadline for the current trade ceasefire. Bessent noted that China will postpone its rare earth export restrictions for one year while the policy is reviewed, a decision that relieves pressure on American firms such as Boeing and Tesla that depend on Chinese materials for their products, as detailed in a

. The deal also signals the possibility of broader collaboration, including talks about restarting Chinese imports of U.S. soybeans—a crucial issue for American farmers who have lost ground to competitors in Brazil and Argentina, according to .

Meanwhile, Boeing Co. has named Landon Loomis, an executive fluent in Mandarin with diplomatic experience in China, to head its operations there. This appointment highlights Boeing’s efforts to secure a major agreement to sell as many as 500 aircraft to China, a deal that depends on reducing trade tensions. Loomis’s experience, which includes five years at the U.S. embassy in Beijing, equips him to manage the complex interplay between business interests and geopolitical concerns, as reported by a

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Experts warn that while the framework is a constructive move, its long-term success hinges on the outcome of the Trump-Xi meeting and further discussions. China’s hesitation to confirm the leaders’ meeting and unresolved matters such as the detention of Hong Kong media figure Jimmy Lai point to ongoing difficulties. Nevertheless, the suspension of tariffs and export restrictions offers immediate relief, and global markets have responded with cautious optimism. The agreement also fits into wider efforts to secure supply chains, as the U.S. looks for alternatives to Chinese rare earths and China seeks to ease trade disputes, according to the

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