US and China Reach Initial Trade Deal as Trump Drops 100% Tariff Threat:

In a major step toward easing trade tensions, the United States and China have reportedly reached an initial agreement covering several contentious issues ahead of a key meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this week. Speaking to CBS News, U.S. Treasury Secretary Scott Bessent confirmed that Trump’s earlier threat to impose 100% tariffs on Chinese imports is now “effectively off the table.” The statement comes after two days of high-level talks that appear to have yielded meaningful progress between the world’s two largest economies. Chinese officials, speaking to Bloomberg, also signaled optimism, saying both sides had achieved a preliminary consensus on several points — including export controls, fentanyl regulation, and shipping charges. These developments mark a clear shift from recent weeks, when escalating trade threats had raised fears of a renewed U.S.–China trade war. Tariff Truce and Key Commitments According to Bessent, the upcoming agreement between Trump and Xi will extend the current tariff truce, settle disputes surrounding the sale of TikTok, and secure the continued supply of rare earth magnets — materials critical for global electronics and defense manufacturing. He also revealed that China has agreed to make “substantial” purchases of U.S. soybeans, a move that could bring much-needed relief to American farmers who have been struggling after Beijing cut back on imports earlier this year. The promise of increased agricultural imports suggests that Beijing is willing to use its purchasing power as a diplomatic tool to ease trade frictions. A Shift in Tone The latest progress represents a striking turnaround from earlier this month, when China expanded its export restrictions on rare earth elements, prompting Trump to threaten 100% tariffs on Chinese goods in retaliation. Analysts at the time warned that such measures could reignite the trade war that had previously disrupted global markets and supply chains. Now, both governments appear to be taking a more cautious approach. By agreeing to step back from punitive tariffs and focusing on cooperation, Washington and Beijing are signaling that neither side wants to see economic tensions spiral out of control. Looking Ahead: Trump–Xi Meeting The upcoming face-to-face meeting between Trump and Xi will be their first since Trump’s return to the White House. Observers expect the leaders to finalize the framework agreement and discuss mechanisms for enforcement, timelines for Chinese purchases, and possible next steps on technology and export regulations. While details remain to be confirmed, early signs suggest that both sides are committed to restoring a degree of stability in trade relations — a move welcomed by global investors and industries reliant on U.S.–China cooperation

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