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Tariffs Cut, Rare-Earth Curbs Paused in U.S.–China One-Year Trade Truce

The pact buys a year of economic calm with durability uncertain after Trump's nuclear-testing order.

Overview

  • Washington will halve certain fentanyl-related tariffs on Chinese goods from 20% to 10%, lowering average punitive rates on many imports to roughly 47%.
  • Beijing will suspend for one year its newly imposed rare-earth export restrictions and expand purchases of U.S. farm goods, after state trader Cofco pre-bought about 180,000 tonnes of soybeans.
  • The two sides extended their tariff standstill for a year and agreed to pause reciprocal port and harbor fees for the same period.
  • Both governments signaled follow-up talks, including potential energy purchases, with Trump saying he plans to visit China in April and hinting at further negotiations.
  • Hours before the Busan meeting, Trump said he had ordered U.S. nuclear weapons testing to resume, injecting strategic uncertainty even as markets welcomed the commercial détente.