Overview
- The United States cut a 20% fentanyl-related tariff on Chinese goods to 10% as part of a truce finalized in a face-to-face meeting between President Trump and President Xi.
- China agreed to pause tighter export controls on rare earths and magnets for roughly one year, easing immediate supply-chain risk for U.S. manufacturers.
- Beijing pledged additional U.S. soybean purchases, with reported commitments below pre-2018 levels despite figures cited for this season and the next three years.
- Even as China received limited relief, the U.S. has raised or maintained higher tariffs on allies and partners, including a 35% rate on Canada and steeper duties on India and Brazil.
- A U.S. Supreme Court challenge to the administration’s 'reciprocal' tariffs begins this week, and analysts warn that unpredictable levies are discouraging firms from relocating production out of China.