Scott Bessent, Treasury secretary: U.S., China reach ‘substantial’ trade framework before summit

Treasury Secretary Scott Bessent announced Sunday that he has reached a “very substantial framework” with Chinese Vice Premier He Lifeng on a deal aimed at easing trade tensions between the world’s two largest economies.

Mr. Bessent said the Trump administration will withdraw its threat to impose a 100% tariff on Chinese imports and Beijing will shelve its plans to restrict rare earth exports. He emphasized that the agreement would benefit American farmers and bolster efforts to combat the fentanyl crisis.

“I think we’ve reached a substantial framework for the two leaders who will meet in Korea next Thursday,” Mr. Bessent said on ABC’s “This Week.”

Mr. Trump and Chinese President Xi Jinping are set to meet on the sidelines of a key Asian summit in South Korea this week.

Mr. Trump said he is optimistic about the meeting, telling reporters last week in the Oval Office, “I think we will make a deal.”

“The president had given me maximum leverage when he threatened 100% tariffs if the Chinese impose their rare earth global export control. So I think we have averted that,” Mr. Bessent said. “We also agreed on substantial agriculture purchases for U.S. farmers.”

“We agreed that the Chinese would begin to help us with the precursor chemicals with this terrible fentanyl epidemic that’s ravaging our country. So I would say that it was a very good meeting overall,” he said.

The Trump-Xi meeting is part of a broader diplomatic tour across Asia. Mr. Trump’s first stop was in Malaysia, where he witnessed the signing of a peace agreement between Cambodian and Thai leaders.

The president is scheduled to travel to Tokyo to meet Japan’s new prime minister, Sanae Takaichi, before heading to South Korea for talks with President Lee Jae-myung. He is expected to deliver remarks at the Asia-Pacific Economic Cooperation summit.