US and China Make Mutual Positive Statements Regarding Tariffs – Here Are the Details

Li Chenggang, China's Representative for International Trade and Vice Minister of Trade, announced that the Chinese and US economic and trade teams held intensive and open discussions on issues of mutual concern.

Following talks held in Kuala Lumpur, Malaysia, the two sides announced that they worked constructively on appropriate solutions on some issues and reached a preliminary agreement.

Li stated that the talks covered a wide range of topics, including export controls, extending the suspension of mutual customs duties, cooperation in combating illicit substances, expanding trade, and the US's shipping fees imposed under Article 301. He noted that both sides have taken a resolute stance and that the domestic approval processes will be completed as the next step.

US Treasury Secretary Scott Bessent announced today that he and Chinese Vice Premier He Lifeng have established a “very comprehensive framework agreement.” He stated that this agreement will prevent the US from imposing 100% tariffs on Chinese goods and allow China to postpone its rare earth export restrictions.

Speaking on NBC's “Meet the Press,” Bessent noted that this framework will be discussed next week in a meeting between US President Donald Trump and Chinese President Xi Jinping. The agenda will reportedly include a more balanced trade structure, increasing US agricultural exports to China, and containing the US illicit substance crisis.

When asked whether the 100% tariffs threatened by Trump would be implemented, Bessent said, “No, I don't expect it. I also anticipate we will receive a reprieve from China's rare earth export restrictions.” It was reported that the final decision would be made after the two countries' leaders meet.