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Trade War Thaws as U.S. and ​China Reach Tentative Agreement Following soybean Purchase

WASHINGTON D.C. – ​A‌ potential escalation ⁤in the U.S.-china trade war appears too have been averted following a recent agreement signaling a de-escalation,just days after‌ China made its​ first⁤ purchase⁣ of U.S. soybeans from the current harvest. Treasury‍ Secretary Scott Bessent indicated Sunday on‍ CBS News’ Face the Nation with Margaret Brennan that a previously threatened 100% tariff on Chinese goods is “effectively⁤ off the ​table.”

The shift comes after China announced stringent export controls earlier in‍ October, including a ban on rare earths for foreign military use and a requirement for government approval for products containing even trace amounts‌ of Chinese-sourced rare earths. These measures were widely interpreted as a⁣ retaliatory move and a demonstration of leverage in ongoing negotiations. according to ‌Bessent, the threat of‍ both⁣ the 100% tariff ⁢and a broader Chinese export control regime has subsided consequently of the emerging deal.

Bessent⁣ refrained from disclosing ⁤specific details of the agreement but highlighted a positive outlook for U.S. soybean farmers. “I would expect that the‌ threat of‌ the 100% has gone‍ away…and I believe that the Chinese will be making substantial purchases again,” he stated, adding that soybean farmers would be “extremely happy with this ⁢deal for this year and for the coming years.”

The negotiations, described by American University adjunct‌ professor⁤ Babak Hafezi as‌ “leverage diplomacy,” saw China utilize​ its control over rare-earth minerals to compel ‌the U.S. to the ​negotiating 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 ⁢process and helps us stabilize ​relations with China more quickly,” he explained.

The tentative truce marks a potential turning point in the‍ ongoing trade tensions​ between the world’s two largest economies, which have seen fluctuating tariffs⁣ and geopolitical friction under the Trump ​and Xi Jinping administrations. The agreement suggests a willingness from both sides ⁢to find common ground, especially regarding agricultural ⁣trade, and to avoid further economic disruption.