Trade War Thaws as U.S. and โChina Reach Tentative Agreement Following soybean Purchase
WASHINGTON D.C. – โAโ potential escalation โคin the U.S.-china trade war appears too have been averted following a recent agreement signaling a de-escalation,just days afterโ China made itsโ firstโค purchaseโฃ of U.S. soybeans from the current harvest. Treasuryโ Secretary Scott Bessent indicated Sunday onโ CBS News’ Face the Nation with Margaret Brennan that a previously threatened 100% tariff on Chinese goods is “effectivelyโค off the โtable.”
The shift comes after China announced stringent export controls earlier inโ October, including a ban on rare earths for foreign military use and a requirement for government approval for products containing even trace amountsโ of Chinese-sourced rare earths. These measures were widely interpreted as aโฃ retaliatory move and a demonstration of leverage in ongoing negotiations. according to โBessent, the threat ofโ bothโฃ the 100% tariff โขand a broader Chinese export control regime has subsided consequently of the emerging deal.
Bessentโฃ refrained from disclosing โคspecific details of the agreement but highlighted a positive outlook for U.S. soybean farmers. “I would expect that theโ threat ofโ the 100% has goneโ awayโฆand I believe that the Chinese will be making substantial purchases again,” he stated, adding that soybean farmers would be “extremely happy with this โขdeal for this year and for the coming years.”
The negotiations, described by American University adjunctโ professorโค Babak Hafezi asโ “leverage diplomacy,” saw China utilizeโ its control over rare-earth minerals to compel โthe U.S. to the โnegotiating table. Hafezi noted that the agreement includes a U.S.commitment to purchase soybeans from COFCO,a Chinese state-owned food processing company,which had not made purchases earlier this year. “This is a quid pro quo in the negotiation โขprocess and helps us stabilize โrelations with China more quickly,” he explained.
The tentative truce marks a potential turning point in theโ ongoing trade tensionsโ between the world’s two largest economies, which have seen fluctuating tariffsโฃ and geopolitical friction under the Trump โand Xi Jinping administrations. The agreement suggests a willingness from both sides โขto find common ground, especially regarding agricultural โฃtrade, and to avoid further economic disruption.
