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

Overview

• President Trump cut average U.S. tariffs on Chinese imports to about 47% from roughly 57%, including an immediate reduction of the fentanyl-related levy to 10%.
• Beijing suspended for one year newly announced export controls on rare-earth elements and related materials, according to China’s Commerce Ministry.
• China agreed to resume major soybean purchases, with Treasury Secretary Scott Bessent citing 12 million tonnes by January and 25 million tonnes annually for the next three years.
• Washington will pause for a year the planned expansion of Commerce Department export restrictions and suspend new port-related charges, with reciprocal steps from China.
• Both sides characterized the deal as a time-limited truce with annual renegotiation and signaled leader visits next year, while markets and analysts viewed it as a short-term stabilizer.