US & China agree to one-year truce aimed at easing trade tensions and stabilizing supply chains across key global industries.
U.S. President Donald Trump and Chinese President Xi Jinping have agreed to a one-year trade deal that reduces tariffs and halts new Chinese restrictions on rare earth exports. The agreement marks the first significant easing of U.S.–China economic tensions in more than three years.
The deal was reached during talks at the APEC Summit in Busan, South Korea. Under the agreement, the United States will lower tariffs on Chinese goods from about 57 percent to 47 percent. In exchange, China will suspend new limits on rare earth exports for one year and increase efforts to curb fentanyl precursor exports, a major concern for Washington.
The rare earth clause is particularly important because China supplies over 70 percent of the world’s processed rare earth materials used in electronics, batteries, and renewable energy manufacturing. The pause is expected to stabilize prices and supply for industries such as electric vehicles, semiconductors, and defense manufacturing.
China also indicated plans to resume large-scale purchases of U.S. agricultural goods, including soybeans and corn. This move could provide relief to American farmers who have faced declining exports during the trade dispute.
Both leaders described the meeting as a success. President Trump called the deal “a great victory for fair trade and global stability,” while President Xi said it represented “a practical step toward mutual benefit.”
Analysts view the agreement as a temporary truce rather than a permanent solution. Core issues such as technology exports, data security, and intellectual property protection were not fully addressed. Experts say the deal may calm markets and restore short-term confidence in global trade but leaves deeper strategic disagreements unresolved.
If implemented smoothly, the truce could help lower shipping costs, ease pressure on logistics networks, and stabilize commodity flows in the coming months. A formal signing ceremony is expected in early November once both sides finalize operational details.
Source: Al Jazeera, Reuters
