US–China talks eye tariff truce, rare earths reprieve before Trump–Xi

Senior US and Chinese economic officials sketched a framework for easing tensions ahead of an anticipated leaders’ meeting later this week, officials said Monday. The outline would pause steep tariff escalations threatened by Washington and delay China’s new export controls on rare earth minerals and magnets.

US Treasury Secretary Scott Bessent, speaking after talks on the sidelines of the ASEAN summit in Kuala Lumpur, said the discussions removed the immediate risk of 100% US tariffs on Chinese goods due to start November 1. He added he expects Beijing to postpone its rare earths licensing regime by a year while reconsidering the policy. Chinese officials were more cautious, saying only that a “preliminary consensus” had been reached and that internal approvals would follow.

The framework is expected to be put before US President Donald Trump and Chinese President Xi Jinping when they meet Thursday at APEC in Gyeongju, South Korea. US officials also said China could revive substantial purchases of American soybeans, while both sides explore limited pauses on recent punitive trade measures.

Beyond tariffs and minerals, negotiators discussed broader issues including trade expansion, US port fees, the fentanyl crisis, and the planned transfer of TikTok to US ownership. The dialogue comes after months of threatened sanctions and export curbs as a fragile truce frayed, with Washington warning of stricter limits and Beijing tightening controls over critical inputs where it dominates global supply.