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U.S. and China Strike One-Year Trade Truce With Tariff Cut and Pause on Some Export Controls

Both governments signal goodwill with verification and specifics still to be negotiated.

Overview

  • Presidents Donald Trump and Xi Jinping agreed in South Korea to a one-year pause that defers certain export-control moves.
  • Trump said the effective U.S. tariff rate on Chinese goods will fall to 47% from 57% after reducing a fentanyl-related levy to 10%.
  • Chinese state media quoted Xi urging both sides to finalize follow-up work, and the commerce ministry pledged cooperation on issues including TikTok.
  • Reporting indicates previously planned U.S. curbs on products made with U.S. software appear to be on hold following the talks.
  • Concrete terms, enforcement mechanisms, and broader trade details remain unclear, with Trump saying the arrangement will be reviewed annually.