Donald Trump and China are closer to achieving a new trade deal. According to U.S. Treasury Secretary Scott Bessent, President Donald Trump and Chinese President Xi Jinping are preparing to meet soon after both countries agreed on a ‘’framework’’ for the deal.
This new step could avoid the 100% tariffs Donald Trump is planning on applying to Chinese products. The main goal is to avoid a trade war, relax international markets, and bring more stability to the global economy. So, let’s see what they are planning in more detail.
‘’Trade deal framework’’
This is a deal between two countries that establish how to buy, sell, and apply taxes to exchanged products. So, a trade framework it’s like a base or the initial draft: it doesn’t have all the details, but it’s the beginning toward a final deal.
Scott Bessent explained that, after 2 days of conversations with China, they are ready to move forward. This deal framework will allow Donald Trump and Xi Jinping to meet this week to make it official.
The immediate goal is to avoid 100% tariffs Donald Trump has threatened to apply since November 1 if China continues to place restrictions on rare earth minerals, which are key for technology and defense equipment.
Importance of this deal
This possible deal could mark a key moment in global trade relationships. Tensions between the U.S. and China have gone further, especially since Donald Trump started tariffs as a tool to pressure China to change the trade policy of Pekin.
These tariffs affected billions of dollars in goods, raised prices, and created uncertainty in international markets. If Donald Trump and Xi Jinping seal the deal, they could lower international tensions and bring back the trust to investors and businessmen in the entire world.
Rare minerals
One of the most delicate issues about the negotiation is rare minerals. These materials are essential to make smartphones, computers, electric vehicles, and military systems. China produces most of the supply worldwide of these minerals, which gives the country a huge advantage.
So, Donald Trump’s Administration fears China will limit its exports and affect American industries that depend on those materials. Regarding this, Bessent said he hopes the deal included the elimination of those export restrictions. He also pointed out that Trump’s threat to impose 100% tariffs gave the U.S. a strong advantage to negotiate and get better conditions.
Donald Trump and Xi Jinping meetings
President Donald Trump is on a 5-day tour around Asia and his first stop was Malaysia for a summit with the Association of Southeast Asian Nations (ASEAN). During this journey, it’s expected that Donald Trump and Xi Jinping will meet with South Korea today to continue the conversations about the trade deal.
Bessent also told NC News that Trump could visit China at the beginning of next year to continue negotiations in person. Another meeting could be organized later on, when Xi Jinping goes to the U.S. to attend the G20 summit.
Fentanyl and agriculture
Conversations between Donald Trump and Xi Jinping go beyond tariffs and rare minerals. Trump said he wanted to talk about fentanyl too, a dangerous opioid that has caused a major health crisis in the U.S.
American authorities accuse China of not controlling the exportation of chemicals used to produce fentanyl. However, China says the problem comes from the high consumption of the drug, not Chinese factories.
Bessent stated he hopes both countries cooperate to stop the fentanyl crisis. Also, he mentioned the deal would include new agricultural agreements, such as more soybean purchases from American farmers.
Optimism from both sides
China’s top trade negotiator, Li Chenggang, confirmed that both countries reached a preliminary agreement about several issues: trade truce, fentanyl cooperation, and export controls.
The world will now watch closely as Donald Trump and Xi Jinping prepare to meet — hoping that this time, both leaders can reach a lasting deal that benefits not just the U.S. and China, but the global economy as a whole.