US, China have reached 'substantial framework' in trade talks, Bessent says

The U.S. and China have reached a "substantial framework" in trade talks ahead of a meeting between President Trump and Chinese President Xi Jinping, Treasury Secretary Scott Bessent says.

"I think we've reached a substantial framework for the two leaders who will meet in Korea next Thursday," Bessent told ABC News on Sunday. "The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their rare earth global export controls, so I think we have averted that," he said, adding that the tariffs on Chinese goods would be avoided if the deal holds.

Regarding China's threat to tariff rare earth minerals, Bessent said he believes "they are going to delay that for a year while they reexamine it."

He also said there is a potential deal on U.S. soybeans after China stopped purchasing them amid the ongoing trade war. China is the largest purchaser of U.S. soybeans, buying more than 50% of American exports in 2023 and 2024, according to the American Soybean Association.

"I believe, when the announcement of the deal with China is made public, that our soybean farmers will feel very good about what's going on, both for this season and the coming seasons, for several years," Bessent said.