A trade deal between the United States and China is reportedly nearing completion, with officials from both sides saying on news shows on Sunday that they reached an initial consensus that President Donald Trump and China’s Xi Jinping will likely finalize during their upcoming meeting in South Korea.
An agreement would ease tensions between the world’s two largest economies, even if it falls short of resolving longstanding disputes over manufacturing imbalances, technology access, and export controls.
Beijing recently imposed new limits on exports of rare earth elements critical to advanced technologies, prompting Trump to threaten additional tariffs on Chinese products. The back-and-forth raised concerns of a deeper trade conflict.
Treasury Secretary Scott Bessent told a media scrum on Sunday that the threat of higher tariffs on China was “effectively off the table.” Discussions had produced initial agreements for China to curb the flow of precursor chemicals used in fentanyl production, increase purchases of soybeans and other agricultural goods, and postpone new export controls on rare earth minerals, Bessent said.
China’s top trade negotiator told reporters that the two sides had reached a “preliminary consensus,” while Bessent described the outcome as “a very successful framework.” The progress was announced during the Association of Southeast Asian Nations summit in Kuala Lumpur.
Trump is scheduled to meet with Xi on Thursday in South Korea, the final stop of his Asia tour. He said he remains confident that an agreement can be reached, noting that both sides are motivated to conclude a deal.
Trump intends to visit China at a later date and suggested Xi could make a reciprocal visit to Washington or to Mar-a-Lago.
At the ASEAN summit, Thailand and Cambodia signed an expanded ceasefire agreement in a ceremony attended by Trump. His economic and diplomatic pressure earlier this year is being credited with helping to halt war between the two nations.
