U.S. and China Seal One-Year Trade Truce With Tariff Cuts and Rare-Earth Pause

Overview

• Average U.S. tariffs on Chinese goods will fall from roughly 57% to about 47%, including cutting the fentanyl-related tariff to 10% from 20%.
• China will suspend for one year its new export controls on rare-earth elements, and both sides will pause reciprocal port levies for a year.
• Washington will freeze for one year a planned expansion of U.S. export-control rules to subsidiaries of listed Chinese firms, easing potential restrictions on thousands of companies.
• Beijing will resume large U.S. soybean purchases, with officials citing 12 million tonnes this year and 25 million tonnes annually for the next three years.
• Markets reacted cautiously as analysts called the deal a time-limited stabilization; Trump said the leaders would cooperate on Ukraine, while issues such as TikTok, Nvidia’s Blackwell chip and Taiwan were not settled.