US-China Reach Trade Framework, Avert Major Tariff Clash
The United States and China have reached a “very substantial framework” in their trade talks, according to U.S. Treasury Secretary Scott Bessent. The deal is expected to prevent the U.S. from imposing the threatened 100% tariffs on Chinese goods, and to delay China’s planned export restrictions on rare earth minerals.
Key Elements
China has agreed to defer the implementation of stricter export controls on rare earths — critical for high-tech manufacturing — while the U.S. holds off on sweeping tariffs. The framework also includes increased Chinese purchases of U.S. agricultural products such as soybeans, and expanded cooperation on controlling precursor chemicals linked to the U.S. fentanyl crisis.
Implications And Outlook
The agreement marks a significant de-escalation in U.S.–China trade tensions. Markets dependent on critical minerals welcomed the development. However, this is not a final treaty. Both U.S. President Donald Trump and Chinese President Xi Jinping will need to endorse the terms in upcoming talks. Analysts warn that successful implementation will require detailed mechanisms, timelines, and mutual trust, which remain uncertain.
