US and China Reach Major Trade Agreement, Avoiding Tariff Escalation
The United States and China have reached a landmark trade deal just ahead of a planned meeting between Presidents Donald Trump and Xi Jinping, effectively removing the threat of new tariffs.
US Treasury Secretary Scott Bessent confirmed that proposed 100% tariffs on Chinese goods are “off the table.” Negotiators resolved disputes over TikTok sales, rare earth magnet exports, and existing tariffs. These materials are critical for electronics and defense supply chains.
The agreement also brings economic relief to US farmers, with China pledging substantial purchases of soybeans, signaling a positive shift in trade relations.
The deal marks a major de-escalation in tensions, stabilizing global supply chains and opening a new chapter in US–China economic cooperation.
