The U.S. has worked out a "framework" trade deal with China that will avoid a threatened additional 100% in tariffs, Treasury Secretary Scott Bessent said Sunday.
Why it matters: The news will come as a huge relief to financial markets, which feared an escalation of the trade war, and to businesses, which worried about an unimaginable surge in their costs.
Catch up quick: The recent re-escalation of the trade conflict with China had tariffs poised to rise to 155% as of Nov. 1.
- President Trump himself conceded such a tariff on the world's second-largest economy was not sustainable.
- Trump and Chinese leader Xi Jinping are on track to meet in the coming days, a conversation expected to touch on rare earth minerals, soybeans, technology exports and more.
What they're saying: "President Trump gave me a great deal of negotiating leverage with the threat of the 100% tariffs on November 1. And I believe we've reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese," Bessent told NBC's "Meet the Press" anchor Kristen Welker on Sunday.
- "I think we will be able to discuss them helping us get this terrible fentanyl crisis under control. I think we are going to be able to discuss substantial soybean and ag purchases for our American farmers. I think we are going to be able to discuss more balanced trade," Bessent said.
- "I believe that we have the framework for the two leaders to have a very productive meeting for both sides, and I think it will be fantastic for U.S. citizens, for U.S. farmers, and for our country in general," Bessent said.
Between the lines: Bessent, in a series of interviews on Sunday morning shows, declined to get into specifics on what was agreed, though he previewed some relief for certain sectors, like the soybean farmers who've seen their largest export market disappear entirely.
- "I can tell you that the soybean farmers are going to be extremely happy with this deal for this year and for the coming years," he told CBS's "Face the Nation."
The intrigue: Bessent also said he expected the Chinese would defer a planned tightening of export controls on rare earth minerals, which has been a flashpoint in the trade war.
- China controls most of the world's supply and processing of rare earths, which are crucial for the manufacture of high-tech products with both consumer and defense applications.
What to watch: "It will be up to the two leaders to discuss the final terms," Bessent told "Meet the Press."
- It was only ten days ago that Bessent told reporters China "can't be trusted."
Editor's note: This story has been updated with additional information throughout.
