The agreement would defer China’s expanded export controls on rare earth minerals and magnets and avoid a new 100% US tariff on Chinese goods from November 1, threatened by Trump, Bessent reportedly added.
The current pause on tariffs that both sides have imposed on each other is scheduled to expire on November 10.
Bessent said the truce could be extended if Trump decides to. This would be the second extension of the tariff pause since it was first signed in May.
Trump wants China to buy more of America’s agricultural produce, particularly soybeans, and curb fentanyl trafficking amidst an effort to rebalance trade between the two countries. “I think we’re going to have a deal with China.” the American President said in Kuala Lumpur, ahead of the summit of the the Association of Southeast Asian Nations (ASEAN).
“We have experienced very intense consultations and engaged in constructive exchanges in exploring solutions and arrangements to address these concerns,” China’s Li said.
Global markets are looking for a truce between Trump and Xi. Beijing is yet to confirm the meeting of the two leaders of the world’s two largest economies and military powers, despite an official announcement by the White House.
Read more: US vs China: Who has the edge in the trade war?
First Published: Oct 26, 2025 9:22 PM IST
