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.
