KUALA LUMPUR, Oct 26 (USA Market Today) — U.S. President Donald Trump said on Sunday that Washington and Beijing are close to finalizing a new trade framework, raising hopes that months of economic tension could ease when he meets Chinese President Xi Jinping later this week.
Top trade and financial officials from both sides wrapped up a fifth round of in-person talks in Kuala Lumpur, reaching what both delegations called a “preliminary consensus” on several key issues.
A new tone before Trump–Xi meeting
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and senior trade negotiator Li Chenggang on the sidelines of the ASEAN summit.
“We’ve established a successful framework for the leaders to discuss on Thursday,” Bessent told reporters, suggesting a potential pause in the tariff escalation that has roiled global supply chains.
Trump, speaking to journalists after arriving in Malaysia, said he was confident about striking a deal. “I think we’re going to have a deal with China,” he said, hinting that the agreement could address long-standing disputes over trade imbalances and fentanyl exports.
Possible tariff relief and rare earth deal
According to U.S. officials, the upcoming discussions could defer a planned 100% tariff on Chinese goods and soften Beijing’s export controls on rare earth minerals — materials vital for U.S. manufacturing and technology sectors.
The two sides also discussed agricultural trade, particularly Chinese purchases of American soybeans, and the ongoing U.S. fentanyl crisis, which had previously led Washington to impose new duties on Chinese imports.
Both sides cautious but optimistic
Chinese Vice Premier He said both countries had engaged in “intense but constructive” exchanges, adding that the latest round of talks helped build trust.
“The U.S. position has been tough,” said Li Chenggang, “but we’ve explored solutions that can meet both sides’ concerns.”
While Beijing has yet to confirm a formal Trump–Xi meeting, U.S. officials said it will likely happen on October 30 in South Korea — the final stop of Trump’s Asia tour.
Beyond trade: wider geopolitical stakes
The talks also touched on issues beyond tariffs. U.S. officials said Trump plans to raise Taiwan, human rights in Hong Kong, and cooperation on the war in Ukraine.
He also indicated that he and Xi could hold follow-up meetings in both countries — either in Washington or at Trump’s Florida estate, Mar-a-Lago.
Tensions between the two nations have risen sharply in recent weeks as both sides expanded sanctions and trade barriers. But Sunday’s progress suggests that a limited truce extension is possible before the November 10 deadline, when existing tariff rollbacks expire.
For now, both markets and diplomats are watching closely. As Trump put it before leaving the summit:
“It’s been tough, but I think we’re finally getting somewhere.”
