U.S.–China Trade Truce Inches Closer As ‘Framework’ Emerges

A Step Toward Stability
The United States and China have agreed on a framework for a new trade deal aimed at avoiding a looming 100% tariff on Chinese goods. Treasury Secretary Scott Bessent confirmed that President Donald Trump and Chinese President Xi Jinping are expected to meet this week to advance the agreement. The talks signal a potential easing of economic tensions between the world’s two largest economies after months of uncertainty.

Rare Earths and Negotiating Leverage
Central to the discussions are China’s rare earth mineral exports—materials vital to electronics, clean energy, and defense technologies. The framework reportedly includes a deferral of new Chinese export restrictions, which had raised alarms across industries reliant on steady mineral supply. Bessent credited President Trump’s tariff threat for giving the U.S. “leverage” to secure concessions that protect American manufacturers and consumers.

Agriculture, Fentanyl, and Future Engagement
The preliminary deal also outlines increased Chinese purchases of American agricultural products, providing a welcome boost for U.S. farmers. In addition, both sides agreed to open discussions on combatting the flow of fentanyl precursors fueling the U.S. opioid crisis—a topic President Trump has pledged to prioritize.

What Comes Next
President Trump is currently in Asia for the ASEAN summit, where he’s expected to meet Xi in South Korea before a possible early-2026 follow-up in Beijing. While details remain under negotiation, both nations appear motivated to stabilize trade relations and avoid the economic fallout of further tariffs.