A major one-year trade deal has been struck between the United States and China following a productive meeting between President Donald Trump and President Xi Jinping. The agreement marks a significant pause in the ongoing trade friction between the two economic giants.
Under the terms of the new pact, the US has agreed to reduce some tariffs and ease certain export controls. China, for its part, committed to purchasing US soybeans and, importantly, agreed not to tighten its restrictions on the export of rare earths or the technology used to process them.
President Trump had previously threatened a staggering 100% import tax over China’s control of the rare earth market. Following the meeting, Trump confirmed this threat was off the table, calling his discussion with Xi “amazing.”
The deal also includes a crucial concession from the US: a one-year postponement of a new measure. This rule would have barred thousands of Chinese firms from accessing US technology if they were even partly owned by a sanctioned company, a move Beijing strongly opposed.
Speaking after the meeting at the APEC forum in South Korea, President Xi advocated for open trade. He urged nations to protect supply chains and practice “genuine multilateralism,” stating teams should finalize the deal to provide “peace of mind” globally.