US and China Prepare Tariff Freeze and Rare Metals Plan for Leaders’ Summit
US and China have drafted a plan to freeze tariffs and ease rare metals export limits, aiming for leader-level approval at the upcoming summit.
Senior economic officials from the United States and China have prepared a draft framework for a potential trade agreement, according to US sources cited by Reuters on Sunday. The proposal reportedly includes a halt to the planned imposition of steep US tariffs as well as a temporary easing of China’s export restrictions on rare earth metals.
US Treasury Secretary Scott Bassett stated that talks held on the sidelines of the ASEAN summit in Kuala Lumpur effectively suspended a 100 percent tariff hike on Chinese imports that was scheduled to take effect on November 1. He added that Beijing is expected to delay its new licensing regime for rare mineral and magnet exports for up to a year pending further review.
Chinese officials have remained cautious and have not publicly confirmed details of the negotiations or outcomes shared by Washington. The lack of immediate comment underscores lingering mistrust as the world’s two largest economies seek to stabilise commercial ties.
US President Donald Trump and Chinese President Xi Jinping are set to meet Thursday in Gyeongju, South Korea, during the APEC summit. The White House says both leaders are expected to sign an initial pact addressing tariffs and China’s mineral export controls, though Beijing has not yet confirmed the signing.
Bassett told reporters after a fifth round of talks with Vice Premier He Lifeng and chief negotiator Li Chenggang that the framework provides a solid basis for leader-level decisions. He expressed optimism that the current tariff ceasefire will be extended beyond its November 10 expiry and that China will resume major purchases of US soybeans after a two-month pause.
US Trade Representative Jamieson Greer said both sides agreed to suspend punitive trade measures and continue working toward a balanced solution. He noted that boosting US exports of specialised goods could help narrow Washington’s trade deficit with China.
Analysts caution that while movement toward a truce signals progress, the broader strategic rivalry and existing technology restrictions may continue to cloud relations. Any breakthrough will require sustained diplomacy, enforcement mechanisms, and political buy-in from both capitals.
Economists say a successful agreement could help calm markets and strengthen global supply chains, especially in industries reliant on rare earth minerals and agricultural trade. A durable deal would also represent a symbolic easing of geopolitical tensions heading into 2026.
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