U.S. and Chinese officials have reached a tentative trade agreement that would avert the additional 100% tariffs on Chinese goods that President Trump threatened earlier this month, representatives from both countries said over the weekend.

The negotiations laid the framework for Trump’s forthcoming meeting with Xi Jinping, China’s leader, on Thursday, Oct. 30.

This latest round of looming new rates came after China increased restrictions on rare earth mineral exports, which are used in products like military jets and electronics. In retaliation, Trump threatened to implement an additional 100% tariff on Chinese goods imported to the U.S., bringing the total tariff to 130% when combined with existing levies already in effect. The new rate was to go into effect on Nov. 1.

As part of the tentative agreement, Chinese officials will delay implementation of rare earth export restrictions – which largely require licenses to export certain elements and technologies from the country – for a year while the policy is reconsidered. Trump and Xi are expected to meet on Thursday in South Korea, at the tail end of Trump’s five-day trip to Asia.

“I think we have a very successful framework for the leaders to discuss on Thursday,” U.S. Treasury Secretary Scott Bessent told news outlets after two days of negotiations at the ASEAN (Association of Southeast Asian Nations) Summit in Malaysia.

Also on the docket for those forthcoming negotiations, officials said, is the existing trade agreement between the U.S. and China, which is set to expire on Nov. 10. Originally signed in mid-May, the deal has been extended twice to delay the implementation of heightened tariffs on Chinese goods – leaving this year’s additional levies at 30%, rather than their peak of 145%.

Bessent said he expects this truce to be extended as part of this week’s meeting, according to Reuters.

The vast majority of products in the promo industry, especially hard goods, are imported from China, according to ASI Research, with the dizzying back-and-forth nature of this year’s tariff announcements prompting a chilled start to 2025 for promo sales and industry optimism. Q3, though, saw bounce-back in sales – indicating that a slightly more stable third quarter in terms of trade negotiations did have a positive impact.

The Trump administration last week ceased all trade talks with Canada after a leader in the Ontario government aired an anti-tariff ad that featured 1987 audio from then-President Ronald Reagan. A lumber tariff – that largely affects Canada – went into effect earlier this month, and so-called “reciprocal” tariffs of up to 50% remain in place on dozens of countries.