October 26, 2025 – U.S. President Donald Trump and Chinese President Xi Jinping may soon be presented with a crucial trade deal, following preliminary discussions between top Chinese and U.S. officials. The talks, which took place on the sidelines of the ASEAN Summit in Kuala Lumpur, Malaysia, have set the stage for a potential agreement that would pause escalating tariffs and delay China’s strict export controls on rare earth minerals.
U.S. Treasury Secretary Scott Bessent revealed that the framework for the deal could significantly ease the trade war tensions that have weighed heavily on global markets. The discussions have led to the postponement of Trump’s planned 100% tariffs on Chinese imports, which were set to take effect on November 1. The move offers a temporary reprieve to both nations, who have seen their economies impacted by the ongoing trade dispute.
A major component of the proposed deal involves China’s decision to delay its strict licensing regime for rare earth minerals, a vital sector for industries ranging from electronics to clean energy. This policy was set to significantly affect global supply chains, and the delay is seen as a major concession by China. The rare earth minerals deal, Bessent noted, will be re-examined after a year.
Additionally, the U.S. is expected to see a resumption of China’s large-scale purchases of American soybeans, a key agricultural export that was hit hard by the trade war. According to Bessent, these purchases are likely to continue for several years, providing a significant boost to American farmers.
The agreement’s outline sets up a critical moment for Trump and Xi to finalize a trade deal when they meet on Thursday. With the stakes high, the upcoming summit could have profound implications for not just U.S.-China relations but for the broader global economy, as both sides aim to de-escalate tensions and foster economic cooperation.
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