U.S. Treasury Secretary Scott Bessent announced on Sunday, October 26, that Washington and Beijing had reached a deal to prevent further escalation of their tariff-driven trade war.
Speaking with ABC’s This Week, Bessent said the U.S. would drop its threat of a 100 percent tariff hike on Chinese goods in exchange for China delaying its planned restrictions on rare earth exports.
He confirmed that “the tariffs will be averted” following his talks with Chinese Vice Premier He Lifeng in Kuala Lumpur. According to Bessent, China agreed to postpone its export curbs for a year while reviewing them.
The agreement is expected to be formally unveiled when Presidents Donald Trump and Xi Jinping meet during Trump’s Asia tour, which ends in South Korea. Bessent also noted that China will resume substantial purchases of U.S. farm products, including soybeans, offering relief to American farmers hit hardest by the trade dispute.