US and China Draft Plan to Freeze Tariffs and Ease Export Limits

Strategic Insights -

Senior economic officials from the United States and China have prepared a draft framework for a potential trade agreement, aiming for leader-level approval at the upcoming summit. The proposal reportedly includes a halt to the planned imposition of steep US tariffs and a temporary easing of China's export restrictions on rare earth metals. The framework provides a solid basis for leader-level decisions, with both sides agreeing to suspend punitive trade measures and continue working toward a balanced solution.

Key Takeaways:

  • A draft plan to freeze tariffs and ease export limits has been drafted by US and Chinese senior economic officials.
  • The proposal includes a halt to the planned imposition of steep US tariffs and a temporary easing of China's export restrictions on rare earth metals.
  • US Treasury Secretary Scott Bassett stated that talks effectively suspended a 100 percent tariff hike on Chinese imports scheduled to take effect on November 1.
  • Beijing is expected to delay its new licensing regime for rare mineral and magnet exports for up to a year pending further review.
  • US President Donald Trump and Chinese President Xi Jinping are set to meet Thursday in Gyeongju, South Korea, during the APEC summit.
  • Both leaders are expected to sign an initial pact addressing tariffs and China's mineral export controls, though Beijing has not yet confirmed the signing.
  • The current tariff ceasefire is set to expire on November 10, but analysts are optimistic that it will be extended.
  • The agreement may help calm markets and strengthen global supply chains, especially in industries reliant on rare earth minerals and agricultural trade.
  • A durable deal would also represent a symbolic easing of geopolitical tensions heading into 2026.

Statistics:

  • 100 percent tariff hike on Chinese imports suspended on November 1 (Bassett).
  • Up to a year delay in new licensing regime for rare mineral and magnet exports by Beijing (Bassett).
  • 2-month pause in buying US soybeans by China (Bassett).
  • US trade deficit with China expected to narrow through boosting US exports of specialized goods (Greer).
  • 11-day window for current tariff ceasefire to expire and potentially be extended (November 10).

Sources:

  • Reuters (cited by US sources).
  • White House (statement on APEC summit).
  • Bassett, Scott (US Treasury Secretary).
  • Greer, Jamieson (US Trade Representative).
  • HT Digital Content Services (published in collaboration with Khaama Press).