U.S. and China near major trade deal ahead of Trump–Xi meeting

  Treasury Secretary Scott Bessent says the United States and China have reached a framework for a trade agreement that could prevent steep new tariffs on Chinese imports.

(CNN)-  Treasury Secretary Scott Bessent says the United States and China have reached a framework for a trade agreement that could prevent steep new tariffs on Chinese imports.

“I believe that we have the framework for the two leaders to have a very productive meeting for both sides,” Bessent said Sunday.

The deal could stop a planned 100% tariff hike on Chinese goods. President Donald Trump is set to meet Chinese President Xi Jinping on Thursday in South Korea, the final stop of Trump’s three-nation tour of Asia.

On Air Force One over the weekend, Trump said his goal is a “complete deal” that helps U.S. farmers and curbs fentanyl exports from China.

“I think we have a really good chance of making a very comprehensive deal,” the president said.

Under the proposed framework, China would halt exports of chemicals used to make fentanyl and commit to making “substantial” purchases of American soybeans. Bessent also said Beijing is expected to delay or lift export controls on rare earth minerals.

The leaders are also expected to finalize an agreement allowing TikTok’s U.S. operations to continue. The plan calls for a domestic investor group led by Oracle founder Larry Ellison to oversee the app’s American algorithm. Negotiators say the talks could mark a turning point in U.S.–China trade relations after months of escalating tensions.