Treasury Secretary Scott Bessent Says U.S. And China Near Trade Truce

U.S. Treasury Secretary Scott Bessent said Washington and Beijing have built a “very substantial framework” that would avert President Trump’s threatened 100% tariffs on Chinese goods set for November 1 and likely secure a Chinese deferral of new rare-earth export curbs.

Speaking while traveling in Asia ahead of a planned Trump–Xi meeting in Korea this week, Bessent added that the talks include “substantial” multiyear Chinese purchases of U.S. soybeans and deeper cooperation to curb fentanyl precursors.

The remarks point to a potential de-escalation after months of tariff brinkmanship and technology frictions.

Any pause on rare-earth restrictions would ease pressure on Western manufacturers in autos, electronics, and defense, while guaranteed soybean demand could buoy U.S. farmers and ripple through global oilseed trade in which Brazil is a leading player.

Bessent Says U.S. And China Near Trade Truce

Bessent also addressed an abrupt 10% U.S. tariff move against Canada following an Ontario government television ad invoking Ronald Reagan.

He criticized the campaign as “propaganda,” noted the ad had been pulled, and suggested North American trade tensions should not distract from Asia-Pacific negotiations.

On the domestic economy, Bessent argued overall inflation continues to cool even as some grocery categories remain elevated.

He highlighted a softer core monthly reading and easing rents, framing the recent uptick in headline prices as consistent with progress toward the Federal Reserve’s 2% goal.