U.S. and Chinese officials reached a preliminary framework for a trade agreement that could pause escalating tariffs and delay China’s rare earth export restrictions.

U.S. Treasury Secretary Scott Bessent said the talks, held on the sidelines of the ASEAN Summit in Malaysia, eased the threat of an additional 100% tariff on Chinese goods starting November 1.

The preliminary deal is expected to be reviewed by President Trump and Chinese President Xi Jinping later this week at the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea.