A tariff hike could potentially damage the Chinese economy. The U.S. imported about $438 billion worth of goods and services from China last year, making it the largest destination for China’s exports. In all, that figure accounts for about 15% of China’s exports, according to the Office of the U.S. Trade Representative.

The United States and China are not going to resolve all the issues that divide them before presidents Donald Trump and Xi Jinping meet Thursday in Busan, South Korea.

"The tariffs will be averted," Bessent told ABC News on Sunday, adding that China agreed to delay rare earth export controls and make "substantial" soybean purchases.