Fragile Ceasefire in U.S.-China Trade Dispute as Both Parties Halt Tariff Threats

U.S. Treasury Secretary Scott Bessent has indicated that tensions in the U.S.-China trade conflict may ease, stating that China is set to make "significant" purchases of American soybeans and will not implement an additional 100% tariff, as reported by

. This statement comes as both countries aim to strengthen their economic ties ahead of an important meeting between President Donald Trump and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, according to .

Recent weeks saw heightened friction, with Trump warning of a 100% tariff on Chinese goods beginning November 1 in retaliation for China’s expanded export restrictions on rare earth minerals, as noted by

. These new rules, which require foreign exporters using Chinese rare earths to obtain licenses, have disrupted international supply chains and led to countermeasures from both the U.S. and the European Union, according to . However, after senior-level talks involving U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, both parties agreed to suspend punitive steps. Bessent confirmed that the 100% tariff proposal is "essentially withdrawn," while China is expected to postpone its rare earth export restrictions for another year, as reported by .

One of the main challenges in the negotiations was China’s sudden suspension of U.S. soybean imports, which fell to zero in September—the first time this has happened since 2018, according to Seeking Alpha. This allowed Brazil and Argentina to take the lead in supplying soybeans to China, with Brazil alone providing 85% of China’s imports that month, as reported by the Times of India. American farmers, who depend on China for nearly half of their overseas soybean sales, have suffered considerable losses. Bessent, however, expressed confidence that the agreement will restore U.S. soybean exports, assuring that farmers will be "very pleased" with the outcome, according to Fortune.

The discussions also covered a range of economic issues, such as U.S. port charges, cooperation on fentanyl regulation, and China’s involvement in the Ukraine situation. Chinese representatives described the talks as having reached an "initial consensus," but stressed that further internal approvals are needed before the deal can be finalized, according to Yahoo Finance. Trump, who has consistently pushed for a "strong" trade agreement, suggested that more meetings with Xi could take place in the future, possibly in both China and the United States.

At the same time, the European Union is independently considering how to respond to China’s rare earth restrictions, with French President Emmanuel Macron proposing the use of the EU’s anti-coercion tool if diplomatic negotiations do not succeed, as mentioned in the Scanx report. The EU’s dependence on China for 90% of its rare earth magnet imports has increased concerns about supply chain risks.

As the U.S. and China attempt to prolong their trade ceasefire beyond November 10, the results of these discussions are likely to have significant effects on global markets. For now, the suspension of tariffs and export limits provides a temporary relief, though the delicate balance highlights the ongoing challenges of managing economic priorities amid international tensions.