US Treasury Secretary Scott Bessett (pictured with Trump) announced on Sunday that he had reached a “very meaningful context” with Chinese Vice President He Lifeng, which will suspend the 100% US tariff measure on Chinese goods and achieve a postponement of rare earth export controls from China.

Bessent said during an interview with NBC that the framework reached in Kuala Lumpur, Malaysia, will allow President Donald Trump and Chinese President Xi Jinping to discuss further trade cooperation next week. The agenda will include more balanced US-China trade, Chinese purchases of US soybeans and other agricultural products, and addressing the spread of fentanyl in the US.

Asked if he expected the US to follow through on Trump’s threat of 100% tariffs on Chinese goods, Bessent said: “No, and I also expect that we will get some kind of reprieve on rare earth export controls discussed by the Chinese.’ Besent added that the final terms will be decided by the two leaders.

Donald Trump said on Sunday that he is optimistic about reaching a trade deal with Beijing and that he expects to have meetings in China and the US.

“I think we will have an agreement with China”, Trump told reporters at the start of his talks with the Brazilian president. “We’ll meet them later in China and we’ll meet them in the U.S., either in Washington or Mar-a-Lago.”