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

Overview

• President Trump announced immediate tariff relief, cutting the average rate on Chinese goods from about 57% to 47% and reducing the fentanyl‑related tariff from 20% to 10%.
• China will suspend newly announced rare‑earth export controls for one year and resume buying U.S. soy, including 12 million tonnes this year and 25 million tonnes annually for the next three years, according to Treasury Secretary Scott Bessent.
• The U.S. agreed to pause for a year the expansion of Commerce Department export‑control lists and to suspend new port and Section 301 measures targeting Chinese shipping and logistics.
• Key disputes were left open, including the future of TikTok’s U.S. operations and Chinese access to Nvidia’s Blackwell chips, and market reaction was cautious.
• Both sides signaled continued negotiations and reciprocal visits, with a formal signing expected soon, and Beijing pledged tighter controls on fentanyl precursors as the leaders also discussed working together on Ukraine.