WASHINGTON / BEIJING: The United States and China have reached a “basic consensus” on key aspects of their trade negotiations, easing fears of another tariff war just days before US President Donald Trump and Chinese President Xi Jinping are set to meet in South Korea.

The agreement followed two days of high-level talks between Chinese Vice Premier He Lifeng and the US delegation led by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer on the sidelines of the ASEAN Summit in Kuala Lumpur.

Constructive Talks Ease Tensions

According to China’s official news agency Xinhua, both sides held “candid, in-depth, and constructive” discussions covering tariffs, export controls, agricultural trade, and cooperation on fentanyl enforcement.

Vice Premier He Lifeng described the dialogue as a positive step toward stabilizing bilateral relations, emphasizing that “the essence of China-US economic ties lies in mutual benefit and win-win cooperation.”

US Confirms Tariff Threat Withdrawn

After the talks, Treasury Secretary Scott Bessent confirmed that Washington’s threat to impose a 100% tariff on Chinese goods is no longer on the table.

“We had a very good two-day meeting. I believe the additional 100% tariff is effectively off the table,” Bessent told CBS News, adding that China’s recent export restrictions are also expected to be reviewed.

The proposed tariffs were originally part of Trump’s response to China’s export curbs on rare earth materials, critical for industries such as electronics, renewable energy, and defence.

Focus on Preventing Escalation

Sources familiar with the discussions told CNN that both sides are now focused on preventing further escalation in trade tensions, which had flared earlier this month. Trump’s threatened tariffs were expected to take effect on November 1, but the latest breakthrough may delay or cancel that move entirely.

Trump Expresses Optimism

President Donald Trump, who arrived in Malaysia on Sunday for the ASEAN Summit — the first stop of his five-day Asia tour — sounded upbeat when asked about progress in trade talks.

“I think we’re going to have a deal with China,” Trump said before heading to South Korea for his scheduled meeting with Xi Jinping on October 30.

Background

The renewed dialogue comes amid growing global concerns over China’s export controls on rare earth magnets and minerals, which have disrupted international supply chains. Both nations have also imposed sanctions and trade curbs on each other’s industries in recent months despite earlier temporary truces reached in Geneva in May and extended in August.

The outcome of the upcoming Trump-Xi meeting will likely determine whether this latest “consensus” evolves into a lasting trade agreement or simply marks another pause in the long-running US-China trade conflict.

Image Source: Google | Image Credit: Respective Owner