US & China Agree One-Year Trade Truce After Donald Trump-Xi Jinping Talks

The U.S. and China have struck a one-year trade truce following a high-level meeting between President Donald Trump and President Xi Jinping at Gimhae Air Base in South Korea.

Key Highlights

Both sides agreed to freeze export controls on rare-earth materials for at least one year, marking a respite in a major supply-chain flashpoint.

The U.S. announced a cut in tariffs on Chinese goods—particularly those linked to fentanyl production—from 20% to 10%, and a broader tariff reduction from 57% to 47%.

China committed to resuming large-scale purchases of U.S. soybeans and maintaining rare-earth exports amid a pause in trade hostilities.

What It Means

The truce signals an easing of trade tensions between the world’s two largest economies—offering potential relief for global markets, including industries reliant on raw-material flows. Analysts caution, however, that underlying structural issues—such as China’s industrial policy and U.S. export controls—remain unresolved.

Stay ahead of market trends with the Credco app. For any queries, please reach out to us via WhatsApp at ‪+918448083211‬.