Treasury Secretary Scott Bessent signaled on Sunday that the U.S. and China will significantly de-escalate their trade war under a framework he negotiated.
In an interview on CBS News’ Face the Nation with Margaret Brennan, Bessent said an additional 100% tariff that President Donald Trump threatened earlier this month is “effectively off the table,” along with China’s rare earth restrictions.
“So I would expect that the threat of the 100% has gone away, as has the threat of the immediate imposition of the Chinese initiating a worldwide export control regime,” he said.
Trump and Chinese President Xi Jinping are scheduled to meet Thursday on the sidelines of a regional economic conference in South Korea, where they will determine the final details of a deal.
Bessent said Trump’s 100% tariff threat, which would have boosted the overall rate above 150%, created significant leverage during the talks in Malaysia with Vice Premier He Lifeng over the weekend.
The two sides also discussed American agricultural exports to China, and Beijing’s role in helping curb the fentanyl trade.
Farmers have been warning of an economic crisis in rural America as crop prices fall and costs remain high, while China has held off on buying any U.S. soybeans this harvest season, despite traditionally being their top export market.
In a separate appearance on ABC’s This Week, Bessent revealed that he is also a soybean farmer: “So, I have felt this pain, too.”
On CBS, Bessent declined to give specific details but said soybean farmers will be “extremely happy with this deal for this year and for the coming years.”
He added that a recent Chinese purchase of soybeans from Argentina had been planned before the U.S. extended a currency lifeline to Buenos Aires but was timed to take advantage of a drop in export duties.
“Those soybeans were always going to be on the market. It’s a global market. The three leading suppliers are Brazil, Argentina, and the U.S.,” Bessent said. “And I believe that we have brought the market back into equilibrium, and I believe that the Chinese will be making substantial purchases again.”
While he indicated China will ease its export controls on rare earths, Bessent suggested U.S. restrictions will remain.
When asked about limits on chip exports and curbs on Chinese investments in the U.S., he replied, “There have been no changes in our export controls.”