U.S. Treasury Secretary Janet Besent announced that Washington and Beijing have reached a “very substantive framework” agreement during ministerial-level trade talks held in Malaysia’s capital, Kuala Lumpur.
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?? Bessent: “The President gave me max leverage with the 100% tariff threat. We’ve likely averted rare earth export controls.”Global markets watching closely.#Tariffs fear may soon be over. Markets are closely observing. pic.twitter.com/LHzI9sU55i
— Crypto Seth (@seth_fin) October 26, 2025
The accord effectively averts the planned 100% additional tariffs on Chinese goods that President Donald Trump had warned could take effect, and delays China’s proposed rare earth export restrictions by one year.
When asked in an NBC interview whether she anticipated the tariffs being imposed, Besent said clearly, “No, I do not.”
She added that the two sides had secured “some form of reprieve” regarding China’s rare earth export measures — a key concern for U.S. manufacturers reliant on these critical materials.
The framework paves the way for President Trump and Chinese President Xi Jinping to meet on October 30 to finalize trade cooperation details.
Senior officials, including Besent and U.S. Trade Representative Katherine Greer, represented the U.S. side, while China’s delegation was led by Vice Premier He Lifeng. Following the first day of talks, a U.S. Treasury spokesperson described the discussions as “highly constructive.”
Soybean Purchases and Extended Tariff Truce Aim to Narrow Trade Deficit
Besent said the U.S. and China are expected to extend their tariff truce beyond November 10, with Beijing set to resume large-scale purchases of U.S. soybeans.
In an interview with ABC, she added, “Once the agreement is public, America’s soybean farmers will be very pleased with the outlook — both for this season and years ahead.”
Greer also told Fox News that the two sides agreed to pause certain punitive measures while establishing a path to expand U.S. rare earth access and offset the trade deficit through “balanced trade expansion.”
On the Chinese side, senior trade negotiator Li Chenggang confirmed that both parties reached a preliminary understanding and would now proceed to domestic approval processes.
While details remain confidential, Li noted that “although the U.S. position remains firm, China has steadfastly defended its interests,” adding that the talks were “intensive and solution-oriented.”
TikTok Dispute and Remaining Issues to Be Discussed at Leaders’ Summit
President Trump, who arrived in Kuala Lumpur on October 26, said after the talks, “I think we’ll reach an agreement with China,” signaling optimism about the negotiations.
Besent said discussions on TikTok’s U.S. operations were progressing, with both sides finalizing the transaction’s details to enable Trump and Xi to “close the deal” during their upcoming meeting in South Korea.
Trump added that he plans to meet Xi both in China and later in the U.S., possibly in Washington, D.C., or Mar-a-Lago, to advance the deal further.
Analysts see this as a major step toward easing years of U.S.–China trade tensions, with potential spillover benefits for global markets.
Crypto Market Reacts Positively: Bitcoin Nears $115,000
The easing of U.S.–China trade tensions also lifted risk sentiment across global markets, including cryptocurrencies. As tariff uncertainty receded, Bitcoin surged by $2,000 on October 27, briefly reaching $115,011, up from around $111,600–$112,600 the previous day.
Experts note that a sustained reduction in trade friction could bolster investor confidence and support continued growth in both equities and digital assets.
