Bessent says US and China have reached framework in tariff negotiations

Treasury Secretary Scott Bessent said he reached a “substantial framework” for U.S.-China trade talks ahead of a meeting between President Donald Trump and Chinese President Xi Jinping on Thursday, potentially avoiding heavy tariffs on imported Chinese goods.

“I think we have reached a substantial framework for the two leaders who will meet in Korea next Thursday,” Bessent told ABC News’ “This Week” co-anchor Martha Raddatz. “The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their global rare earth export controls, so I think we’ve avoided that,” adding that tariffs on Chinese products would be avoided if the deal stands.

On China’s threat to impose controls on exports of valuable rare earth minerals, Bessent said he believes “they’re going to delay that for a year while they re-examine it.”

Bessent also alluded to a possible deal on American soybeans after China stopped buying them from the United States amid the ongoing trade war. According to the American Soybean Association, China is the largest buyer of American soybeans and will buy more than 50% of American exports in 2023 and 2024.

“I think that when the announcement of the agreement with China is made public, our soybean producers will feel very good about what is happening, both for this season and for the next ones, for several years,” he said.

Bessent also weighed in on the current government shutdown, now the second longest in U.S. history, and opposed the prospect of renewing negotiations with Democrats.

“Should the president meet with Democrats again?” -Raddatz asked.

“Well, what’s the point, Martha? They held on,” Bessent said, referring to Democratic lawmakers who are pushing for an extension of pandemic-era health care subsidies, which are set to expire at the end of this year.

“Fifty-two Republican senators have voted 11 times to reopen the government, three brave moderate Democrats have crossed the aisle,” he said. “So, you know, I call on moderate Democratic senators to put an end to this madness.”