Xi and Trump Back Trade Truce With Tariff Relief, Task Teams to Finalize Agreement

Overview

• At their Busan meeting, the presidents agreed to deepen cooperation in economy, trade and energy, encourage people-to-people exchanges, maintain regular contacts, and exchanged invitations for reciprocal visits.
• China’s Commerce Ministry said the U.S. will cancel a 10% “fentanyl tariff” and extend for one year the suspension of 24% reciprocal tariffs on Chinese goods, including shipments from Hong Kong and Macao, with certain tariff exclusions continued.
• Beijing said it will make corresponding adjustments to its countermeasures in response to the U.S. moves.
• Both leaders directed their negotiating teams to convert the Busan understandings and the Kuala Lumpur talks into implementable steps with verification and enforcement details.
• Chinese Foreign Ministry spokesperson Guo Jiakun acknowledged U.S. Treasury Secretary Scott Bessent’s comment that a deal could be signed as soon as next week as Beijing reiterated willingness to implement the leaders’ consensus.