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U.S. and China Seal One-Year Trade Pause as APEC Backs Cooperation and Military Talks Reopen

A one-year freeze on new tariffs with rare-earth curbs offers breathing room after APEC’s Gyeongju commitments.

Overview

  • The TrumpXi understanding pauses new tariffs for roughly a year and temporarily halts measures on rare earths, easing immediate pressure on critical supply chains.
  • APEC leaders issued the Gyeongju declaration reaffirming the importance of trade and investment for regional growth and released separate joint statements on AI and demographic challenges.
  • U.S. Defense Secretary Pete Hegseth announced the reopening of military-to-military communications with China, with further meetings planned to prevent incidents and reduce risk in sensitive regions.
  • Xi Jinping stepped into the spotlight after President Trump departed South Korea, promoting free trade and holding bilaterals with Japan, Canada and South Korea, including a stated reset in CanadaChina ties.
  • Analysts describe the truce as tactical and nonbinding, noting that follow-through and rulemaking on trade, AI governance and supply-chain resilience remain unresolved.