The US and China reached a preliminary trade deal in Malaysia to avert major tariffs and export restrictions, paving the way for upcoming talks between Trump and Xi on trade balance.
US Treasury Secretary Scott Bessent announced on 26 October 2025 that the Trump administration had reached a significant preliminary agreement with Chinese Vice Premier He Lifeng to ease trade tensions between the two nations.
The deal, finalised during talks in Malaysia, is expected to prevent the imposition of 100% US tariffs on Chinese imports and secure a delay of China’s planned restrictions on rare-earth exports.
Bessent revealed during an interview with NBC’s “Meet the Press” that the framework sets the stage for further discussions between President Donald Trump and Chinese President Xi Jinping next week. Their agenda will likely focus on achieving a more balanced trade relationship, increasing Chinese imports of US agricultural products, such as soybeans, and addressing the US fentanyl crisis.
When asked about the likelihood of the US moving forward with the proposed tariffs, Bessent expressed confidence that such measures would not be necessary.
