Italian
Just days before the highly anticipated face-to-face between Donald Trump and Xi Jinping, the United States and China have outlined a preliminary framework for a trade agreement, marking a potential turning point in tensions between the world’s two largest economies.
MALAYSIA. According to Treasury Secretary Scott Bessent, the agreement was reached during the Association of Southeast Asian Nations (ASEAN) summit in Malaysia and includes the suspension of the 100% tariffs on Chinese imports originally scheduled for November 1. The deal would also encompass a “final agreement” for the sale of TikTok in the United States.
Trump, who arrived in Kuala Lumpur on Sunday for the summit — the first stop on a five-day Asian tour — expressed optimism after the talks: “I think we will be able to reach an agreement with China,” he told reporters.
Towards a Trade Truce
Beijing has agreed to postpone restrictions on the export of strategic minerals, essential for the production of military jets, smartphones, and electric vehicles, by one year. China’s chief negotiator, Li Chenggang, confirmed that “the parties have reached a preliminary consensus” and that the internal approval process will now begin. “The consultations were intense but constructive,” he stated.
The temporary agreement reduces the risk of a global trade war that, analysts say, could have severely affected the European and British automotive industries.
The Rare Minerals Crisis and the Soybean Dispute
Tensions between Washington and Beijing had escalated in recent months following Trump’s announcement in Washington of new large-scale tariffs. China responded by limiting exports of rare earths — crucial materials for electronics and the automotive industry, of which it controls roughly 60% of global production.
Beijing had also suspended purchases of U.S. soybeans, hitting American farmers hard: in 2024, China accounted for nearly half of the $24 billion in U.S. soybean exports.
Bessent stated that the agreement will allow China to resume “substantial purchases” of American soybeans, enabling U.S. farmers to “look forward with confidence not only to this season but also to the coming years.”
Reopening Channels with Brazil
In addition to easing tensions with China, relations between the United States and Brazil also appear to be moving toward a more collaborative phase. Brazilian President Luiz Inácio Lula da Silva described his meeting with Trump in Malaysia as “positive,” announcing the immediate start of talks to reduce tariffs and diplomatic tensions.
Relations between Washington and Brasília had deteriorated after the U.S. raised tariffs to 50% on much of Brazil’s exports, a measure Trump justified as a response to a supposed “witch hunt” against former President Jair Bolsonaro.
