Treasury Secretary Scott Bessent said that he reached a “substantial framework” for trade talks between the U.S. and China ahead of a meeting between President Donald Trump and Chinese President Xi Jinping on Thursday — potentially averting hefty tariffs on imported Chinese goods.
“I think we’ve reached a substantial framework for the two leaders who will meet in Korea next Thursday,” Bessent told XiarraMedia “This Week” co-anchor Martha Raddatz. “The president had given me maximum leverage when he threatened 100% tariffs if the Chinese imposed their rare earth global export controls, so I think we have averted that,” adding that the tariffs on Chinese goods would be avoided if the deal holds.
On China’s threat to impose export controls on valuable rare earth minerals, Bessent said he believes “they are going to delay that for a year while they reexamine it.”
Bessent also alluded to a potential deal on American soybeans after China stopped purchasing them from the U.S. amid the ongoing trade war. According to the American Soybean Association, China is the largest buyer of American soybeans, purchasing more than 50% of U.S. exports in 2023 and 2024.
“I believe, when the announcement of the deal with China is made public, that our soybean farmers will feel very good about what’s going on, both for this season and the coming seasons, for several years,” he said.
Bessent also weighed in on the ongoing government shutdown, now the second-longest in U.S. history, balking at the prospect of renewing negotiations with Democrats.
“Should the president be meeting with Democrats again?” Raddatz asked.
“Well, what good does it do, Martha? They dug in,” Bessent said, referring to Democratic lawmakers who are pushing for an extension of pandemic-era health care subsidies, 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 come across the aisle,” he said. “So, you know, I call on moderate Democratic senators to end this craziness.”