U.S. Drops Plan for 100% Tariffs on Chinese Goods After Kuala Lumpur Talks

U.S. Drops Plan for 100% Tariffs on Chinese Goods After Kuala Lumpur Talks

Both sides reach "preliminary consensus," easing trade tensions ahead of expiring tariff pause

KUALA LUMPUR, Oct. 28, 2025 – In a significant de-escalation of recent trade tensions, the United States has stepped back from its threat to impose 100% additional tariffs on Chinese goods. The announcement followed two days of intensive talks between Chinese and U.S. trade representatives in the Malaysian capital-1.Constructive Talks and Key OutcomesThe negotiations, held from October 25 to 26, were the fifth face-to-face meeting between the teams since May-1. Chinese Vice Premier He Lifeng led the discussions with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer-9.

Following the talks, Secretary Bessent stated that the U.S. is "no longer considering" the proposed 100% tariffs and that the parties had agreed on a "very successful framework"-1-6. The two sides described the talks as "frank, in-depth, and constructive"-9.

Key discussion topics included-1-7-9:U.S. Section 301 measures on China's maritime, logistics, and shipbuilding sectors.Extending the suspension of reciprocal tariffs, which is set to expire on November 10-1.Trade in agricultural products and export controls.Fentanyl-related tariffs and law enforcement cooperation.The teams reached a "preliminary consensus" on addressing these issues and agreed to finalize the specifics while undergoing their respective domestic approval procedures-9.A Foundation for Healthier Trade RelationsIn his remarks, Vice Premier He Lifeng emphasized that "cooperation benefits both while confrontation hurts both"-9. He underscored the importance of managing economic ties through mutual respect and dialogue to properly address concerns-1-9.

The U.S. side acknowledged the significance of the bilateral relationship, with the American representatives stating they are willing to resolve differences and strengthen cooperation with China on the basis of equality and respect-1.Broader Context and Looking AheadThis diplomatic breakthrough comes as a relief to businesses and markets concerned about a fresh escalation in the U.S.-China trade dispute-3. The decision to set aside the threat of drastic tariffs marks a return to a more stable dialogue and helps pave the way for healthier engagement-1-9.

Both sides have committed to maintaining close communication under the strategic guidance of their leaders, aiming to foster a stable and sustainable bilateral trade relationship