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USChina Seal One-Year Trade Truce as Southeast Asia Faces Ongoing Pressure

The Busan deal offers narrowly targeted relief that restores some stability without altering the underlying rivalry.

Overview

  • Washington cut the fentanyl-linked tariff to 10%, reducing the average U.S. duty on Chinese goods to roughly 47%.
  • Beijing deferred expanded rare-earth export controls and signalled licensing flexibility for key critical minerals.
  • China agreed to resume large-scale purchases of U.S. soybeans, offering near-term relief for American farm regions.
  • The United States and China reopened military-to-military communications to improve de-confliction at sea and in the air.
  • The package is limited to one year with annual renegotiation, and analysts say Southeast Asia gains only a temporary breathing space.