The US and China reached a preliminary trade framework that pauses planned tariff escalations and delays China’s rare earth export licensing regime by one year.
Treasury Secretary Scott Bessent said talks in Kuala Lumpur removed the threat of 100% tariffs on Chinese imports slated for November 1 and that he expects the existing tariff truce to be extended beyond its November 10 expiry. He added that China will delay implementation of its rare earth minerals and magnets licensing regime by one year while the policy is reconsidered.
The framework also includes a resumption of US soybean sales to China, with Bessent saying farmers “will feel very good” about current and coming seasons once terms are announced.
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However, Beijing is more cautious than its optimistic counterparts in Washington. Chinese officials confirmed only that a “preliminary consensus” was reached and offered no specific terms, unlike Bessent, underscoring a gap in detail ahead of the leaders’ review.
China’s top trade negotiator Li Chenggang acknowledged progress after meetings with Bessent, Trade Representative Jamieson Greer, and Vice Premier He Lifeng in Kuala Lumpur amid the ASEAN summit hosted in Malaysia, but withheld particulars.
The leaders’ sign-off is scheduled for October 30 on the sidelines of the APEC summit in South Korea. The White House announced the Trump–Xi meeting last week, but Chinese authorities have yet to issue parallel confirmation of the bilateral session.
Shares of rare earth and critical minerals names fell after reports of the one-year delay and tariff pause. MP Materials, NioCorp Developments, and USA Rare Earth traded lower as supply-risk premiums eased following the truce headlines.
Information for this story was found via Al Jazeera and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
