US and China Reach Trade Deal Framework on Trump’s Asia Visit

The US has reached a framework agreement with China to avoid imposing an additional 100% tariff on Chinese imports, according to US Treasury Secretary Scott Bessent. This development comes during President Donald Trump’s visit to Asia, where he is expected to meet with Chinese leader Xi Jinping. Trump's trip began in Malaysia, where he oversaw the signing of a peace declaration and received praise from Southeast Asian leaders.

US stock futures rose after US and Chinese representatives agreed on a trade deal framework, potentially averting a tariff increase on Chinese goods. Dow futures were up 0.65%, S&P 500 futures rose 0.74%, and Nasdaq futures climbed 0.92%. The positive market response followed September's Consumer Price Index data showing lower-than-expected inflation, leading to expectations of a Federal Reserve interest rate cut.

The US federal government shutdown continues, with concerns raised about Trump's military campaign against alleged drug trafficking in the Caribbean. The shutdown's impact includes the US Department of Agriculture stating it will not cover food stamp benefits next month if the shutdown persists. This decision affects around 42 million Americans who rely on food assistance.

US Treasury Secretary Scott Bessent, a soybean farmer, expressed optimism about China making substantial purchases of US soybeans under the trade deal framework. Negotiators from both countries have signaled progress in trade talks, with the outcome likely depending on Trump's meeting with Xi Jinping.

As Trump's Asia tour continues, concerns arise over his expanding military campaign against alleged drug traffickers in South America. Republican Sen. Lindsey Graham defended Trump's authority to conduct military operations in the region, including potential land strikes against Venezuela.

US Ambassador to NATO Matthew Whitaker emphasized the importance of China joining the US in imposing sanctions against Russia. The US is reportedly preparing new sanctions targeting Russia's economy if President Vladimir Putin does not return to negotiations.

Trade negotiations between the US and China may impact various sectors, including fentanyl production, soybean purchases, rare earth minerals, and the ownership of TikTok. The potential deal aims to address trade tensions between the two countries.

Trump's visit to Asia has seen progress in trade talks with China and diplomatic engagements with regional leaders. The US and China have signaled reduced tensions in their trade discussions, setting the stage for a meeting between Trump and Xi Jinping.

US Treasury Secretary Scott Bessent has indicated progress in trade talks with China, suggesting that an escalation in tariffs is unlikely. Negotiators from both countries have reached a basic consensus on addressing trade concerns, paving the way for discussions between Trump and Xi Jinping.

President Trump's involvement in brokering peace agreements in Asia has been highlighted during his visit to Malaysia. The joint declaration signed between Thailand and Cambodia includes commitments to release prisoners of war and implement de-escalation measures along their border.