U.S. Treasury Secretary Scott Bessent announced Sunday that Washington is backing off President Donald Trump’s earlier threat to impose an additional 130% tariff on Chinese imports, citing progress in ongoing trade talks between the two nations.
Bessent appeared on several Sunday morning news programs, stating that negotiators had reached what he described as a “very substantial framework” with Chinese Vice Premier He Lifeng and Trade Representative Li Chenggang during discussions held in Malaysia over the past week. He said the progress made was “encouraging” and that both sides were working to finalize an agreement before the APEC summit in South Korea later this week.
“The threat of the 100% [tariffs] has gone away,” Bessent said, adding that the tariff threats had given Washington “the leverage needed to move Beijing to the table.” He emphasized that the U.S. sought “fair competition” rather than escalation, signaling a more conciliatory tone after weeks of rising tensions.
The latest standoff began earlier this month when China introduced strict export controls on several key rare earth minerals crucial to U.S. industries, including defense manufacturing and advanced technology production. The move prompted Trump to threaten sweeping new tariffs on Chinese goods and to briefly cancel his planned meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) summit, before later reinstating it.
Bessent did not provide specifics about the framework reached with Chinese officials, nor did he confirm whether another 90-day truce on the existing tariffs would be agreed upon. The current truce expires in two weeks.
Observers caution that optimism from the Trump administration should be treated with care, as similar positive statements have been followed by abrupt policy reversals in past negotiations.
President Trump and President Xi are expected to meet on the sidelines of the APEC summit later this week in South Korea. The White House has not disclosed the full agenda, though Trump has repeatedly said he hopes to enlist China’s cooperation in helping end the ongoing war in Ukraine.