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Trump and Xi Announce Trade Truce: U.S. Tariffs Cut to 47% as China Halts Rare‑Earth Curbs for a Year

Officials now pivot to verification with a possible signing as soon as next week.

Overview

  • The U.S. immediately reduced fentanyl‑linked tariffs from 20% to 10%, lowering the overall U.S. levy on Chinese goods from roughly 57% to 47%.
  • Beijing will suspend for one year its recent export controls on rare‑earth minerals and related magnets and will restart large purchases of U.S. farm goods.
  • Both sides agreed to pause for a year the reciprocal port and maritime measures, with Washington postponing planned Section 301 actions.
  • Some categories will still face steep duties—up to 100% on certain products—U.S. Trade Representative Jamieson Greer cautioned.
  • The Busan meeting, the first Trump‑Xi face‑to‑face in six years, produced a short‑term package that leaves core disputes unresolved and could be formalized as soon as next week, according to Treasury Secretary Scott Bessent.