U.S. Cuts China Tariffs as Xi Pauses Rare‑Earth Controls in One‑Year Truce

Overview

• Meeting in Busan, the leaders held their first face-to-face talks since 2019 and agreed to a time-limited de‑escalation.
• The U.S. reduced average tariffs on Chinese goods from 57% to 47% and canceled a previously announced 100% levy.
• China will suspend new rare‑earth export controls for one year and restart sizable purchases of U.S. soy and other agricultural products.
• Both sides committed to tighter controls on chemical precursors linked to fentanyl, and the U.S. cut the fentanyl-related tariff from 20% to 10%.
• Trump said they would work together on Ukraine and outlined reciprocal visits next year, as implementation details and verification still lie ahead.