Trump Nears Trade Deal With China

 

Treasury Secretary Scott Bessent said on Sunday he has reached a "very substantial framework" with Chinese Vice Premier He Lifeng that will avoid 100% U.S. tariffs on Chinese goods and achieve a deferral of China's rare earths export controls. 

 Bessent said during the taping of an interview with NBC's "Meet the Press" program that the framework reached in Kuala Lumpur, Malaysia will allow President Donald Trump and Chinese President Xi Jinping to discuss further trade cooperation next week. The agenda would include more balanced U.S.-China trade, Chinese purchases of American soybeans and other agricultural products, and getting the U.S. fentanyl crisis under control.

Asked if he anticipated that the U.S. would proceed with Trump's threat of 100% tariffs on Chinese goods, Bessent said: "No, I'm not, and I'm also anticipating that we will get some kind of a deferral on the rare earth export controls that the Chinese had discussed." Bessent added that final terms would be decided by the two leaders.

Earlier story:

President Donald Trump started his Asia tour in Malaysia Sunday with a flurry of signatures, rewarding feuding neighbours Cambodia and Thailand with trade deals after co-signing their ceasefire pact, and saying he was confident of a "great" deal when he meets Chinese Premier Xi Jinping later this week.

Trump brimmed with confidence ahead of the meeting with Xi in South Korea that seeks to seal a deal to end the bruising trade war between the world's two biggest economies.

"I think we're going to make a deal," he told reporters in Kuala Lumpur, as US Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng concluded two days of meetings.

"It's going to be great for China, great for us."

Bessent said the talks, seeking an agreement to avoid further 100 percent tariffs due to come into effect on November 1, "set the stage for the leaders' meeting in a very positive framework".

For Trump, however, first on his order of business in Kuala Lumpur -- on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit -- was co-signing a ceasefire agreement between Thailand and Cambodia.

Trump called the truce he helped broker -- after the deadliest clashes between the neighbours in decades -- a "monumental step", adding that alongside it he had struck "a major trade deal with Cambodia and a very important critical minerals agreement with Thailand".

As he left Washington, Trump added to speculation that he could also meet North Korean leader Kim Jong Un for the first time since 2019 while on the Korean peninsula, saying he was "open to it".

The US president will also visit Japan, on his first trip to Asia since returning to the White House in January in a blaze of tariffs and international dealmaking.

It is Trump's first visit as president to Kuala Lumpur, where his flight was escorted on its final approach by two Malaysian F-18 jets.

Greeted with a red carpet welcome and a sea of Malaysian and US flags, a grinning Trump responded with his trademark arm-waving dance to cultural performers.

Trump, who also signed a trade and minerals deal with Malaysia, rode with Prime Minister Anwar Ibrahim in his armoured Cadillac -- nicknamed "The Beast".

A small group of protesters, including some holding placards reading "Dump Trump", rallied elsewhere in the city.

Trump met Qatar's leaders -- among the guarantors of the Gaza ceasefire deal he spearheaded -- during a refuelling stop, and met Brazilian President Luiz Inacio Lula da Silva, to improve ties with the leftist leader.

"I think we'll be able to do some pretty good deals," Trump said to Lula.

- Tariff talks -

After Malaysia, Trump is expected in Tokyo on Monday, where the following day he will meet Japan's new Prime Minister Sanae Takaichi.

The US leader said he had heard "great things about her" and hailed the fact that she was an acolyte of assassinated former premier Shinzo Abe, with whom he had close ties.

Takaichi said she told Trump in a phone call on Saturday that "strengthening the Japan-US alliance is my administration's top priority on the diplomatic and security front".

Japan has escaped the worst of the tariffs Trump slapped on countries around the world to end what he calls unfair trade balances that are "ripping off the United States".

The highlight of the trip is expected to be South Korea, where Trump will meet Xi for the first time since his return to office.

Trump is due to land in the southern port city of Busan on Wednesday ahead of the Asia-Pacific Economic Cooperation (APEC) summit, and will meet South Korean President Lee Jae Myung.

On Thursday, global markets will be watching closely to see if the meeting with Xi can halt the trade war sparked by Trump's sweeping tariffs, especially after a recent dispute over Beijing's rare-earth curbs.

South Korea's reunification minister has said there is a "considerable" chance that Trump and North Korea's Kim will also meet.

The two leaders last met in the Demilitarized Zone (DMZ) separating the two Koreas during Trump's first term.

Kim has said he would also be open to meeting the US president if Washington drops its demand that Pyongyang give up its nuclear arsenal.