US and China Reach Trade Deal to Avoid New Tariffs

The United States and China have agreed on a basic trade deal, just in time to stop a new round of punishing tariffs. The breakthrough came during talks in Malaysia and sets the stage for a meeting between Presidents Donald Trump and Xi Jinping later this week in South Korea.

U.S. Treasury Secretary Scott Bessent called the talks “productive.” He said the two sides now have a clear plan to present to their leaders. The deal covers several hot-button issues that have fueled tension for months.

China will start buying large amounts of American soybeans again. Farmers in the U.S. Midwest have been hurting since Beijing stopped those purchases last year.

China also agreed to hold off on tighter limits for rare earth minerals—materials used in everything from phones to electric cars—for at least a year.

• US and China Reach Trade Deal to Avert New Tariffs and Ease Tensions
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On the TikTok front, the app’s U.S. operations will be run separately from its Chinese parent company, ByteDance. American officials will have a say in how the app works in the U.S., and the company’s board will include U.S. members. This avoids a total ban that had been looming.

Both countries promised not to add any new tariffs while they work out the final details. Trump had threatened 100% duties on Chinese goods starting in November.

Speaking in Malaysia, Donald Trump announced smaller trade wins with Cambodia, Thailand, and Vietnam, including $8 billion in Boeing plane sales to Hanoi. “The United States is fully committed to Southeast Asia,” he said.

China’s government released a short statement saying the two sides had reached “basic agreement” and would keep talking.

For American farmers like Bessent himself, the soybean news is a big relief. “Our farmers are going to feel a lot better about the coming seasons,” he said.

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The agreement doesn’t solve every problem—issues like stolen technology remain—but it buys time and eases immediate pain. All eyes are now on the Trump-Xi meeting to see if the deal holds.