Trump and Xi to Weigh Rare Earths, Tariff Truce After Breakthrough in Trade Talks

In a pivotal moment for global trade and U.S. economic security, President Donald Trump and Chinese President Xi Jinping are set to weigh a breakthrough framework that would halt steep tariffs and ease rare earths export controls, after negotiators from both nations hashed out terms during side meetings at the ASEAN Summit in Kuala Lumpur.

According to U.S. Treasury Secretary Scott Bessent, the framework developed over five rounds of negotiations eliminates the threat of Trump’s planned 100% tariffs on Chinese goods scheduled for November 1. In exchange, China is expected to delay by one year the implementation of export licenses for rare earth minerals and magnets, a move that would have had devastating implications for global supply chains.

“I think we have a very successful framework for the leaders to discuss on Thursday,” Bessent said, referring to the upcoming Trump-Xi meeting at the APEC summit in South Korea.

This deal could signal a major shift in the economic battlefield between the world’s two largest economies. China, which controls over 90% of global rare earth supply, recently imposed tighter export restrictions that triggered panic across key sectors reliant on these strategic materials such as semiconductors, electric vehicles, and national defense.

Trump’s response was swift: threaten new 100% tariffs to force Beijing’s hand.

And it worked.

While Chinese officials remained cautious and vague, U.S. negotiators confirmed that both sides agreed on a pause in punitive actions, a revival of Chinese purchases of U.S. soybeans, and a delayed rollout of China’s rare earth export licensing regime.

• China’s trade surplus with the U.S. hit $123 billion last year

• Zero soybean purchases were made from the U.S. in September, favoring South American suppliers

• The new agreement would resume significant U.S. agricultural exports, including soybeans, helping American farmers recover lost ground

“U.S. soybean farmers will feel very good about what’s going on… both for this season and the coming seasons,” Bessent said on ABC’s This Week.

The rare earths dispute illustrates a broader truth: China has weaponized trade, and the Biden administration’s passive stance has only emboldened the Chinese Communist Party. But with Trump back at the table, the U.S. is now forcing Beijing to negotiate on American terms.

U.S. Trade Representative Jamieson Greer told Fox News Sunday that the U.S. achieved a framework ensuring “more access to rare earths from China” and “a path forward to balance the trade deficit.”

The framework also includes:

• Discussions on TikTok's transfer to U.S. control, with final details being worked out before Trump and Xi meet

• Joint talks on the U.S. fentanyl crisis, a key area where Chinese precursor chemicals have fueled overdose deaths in America

• Review of U.S. port entrance fees and regulatory issues

• Trump raising concerns about Taiwan, the imprisonment of Hong Kong media tycoon Jimmy Lai, and China’s human rights record

“We’ve agreed to meet. We’re going to meet them later in China, and we’re going to meet in the U.S., in either Washington or at Mar-a-Lago,” Trump confirmed.

The upcoming Trump-Xi summit stands to not only restore strategic balance between the U.S. and China, but also to reaffirm Trump’s bold, results-driven foreign policy.

Under Biden, tensions have worsened, but without leverage. The result? Increased Chinese aggression, crippling supply chain vulnerabilities, and record-breaking trade deficits.

Now, Trump is seizing the moment reasserting U.S. power, defending national industries, and delivering real wins for American workers, farmers, and manufacturers.

As the Thursday summit in South Korea approaches, all eyes will be on two leaders but only one is putting America’s interests first.

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