Secretary of the Treasury Bessenot. AP=Yonhap News. 

U.S. Secretary of the Treasury Scott Bessenot announced on the 26th (local time) that he expects China's rare earth export controls to be suspended in relation to U.S.-China trade negotiations, and consequently, the U.S. will not impose an additional 100% tariff on China.

Bessenot, accompanying President Donald Trump on his Asian tour, said in separate interviews with U.S. broadcasters NBC, ABC, and CBS that day, "My Chinese counterpart (Vice Premier He Lifeng) and I have established a framework for a trade agreement."

Ahead of the summit between President Trump and Chinese President Xi Jinping to be held in Busan on the 30th, high-ranking officials from both sides, including Secretary Bessenot and Chinese Vice Premier He Lifeng, met in Malaysia for two days to finalize the agenda.

When asked if the U.S. would not impose an additional 100% tariff on China, Bessenot told NBC, "I do not anticipate (the imposition of 100% tariffs)," adding, "I also expect that China's discussed rare earth export control measures will be suspended for a certain period."

In an interview with ABC, he explained, "I believe China will postpone the implementation of (rare earth export controls) for one year while reviewing it."

Bessenot stated, "President Trump gave me significant leverage through the threat of imposing '100% tariffs'," and "As a result, we have avoided tariffs (due to the suspension of China's rare earth export controls)."

China, the world's largest exporter of rare earths, had previously announced that it would significantly expand its rare earth export controls starting December 1st. The Trump administration criticized this and stated that if China's stance did not change, it would impose an additional 100% tariff on Chinese products starting November 1st.

Bessenot's remarks suggest that both sides have laid the groundwork for an agreement to put on hold rare earth export controls and additional tariffs on China, which were major sticking points in the U.S.-China trade negotiations.

Bessenot also announced, "We have also agreed to large-scale agricultural purchases for American farmers," and "China has agreed to start helping resolve the issue of precursor materials for fentanyl, which is devastating American communities."

He indicated that common ground has been found on other key issues in the U.S.-China trade negotiations, such as China's halt of U.S. soybean purchases and the blocking of fentanyl inflow into the U.S.

Regarding the "TikTok deal," which involves U.S. investors acquiring the U.S. operations of China's popular video platform TikTok, Bessenot stated, "We have reached a final agreement," adding, "All details have been coordinated as of today, and the two leaders will finalize that agreement in Korea on Thursday (30th)."

Bessenot said, "The two leaders will also discuss President Trump's global peace initiative, which has been successful in Asia and the Middle East," and "President Trump's attention is now turning to Ukraine and Russia."

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