A one-year trade truce has been reached between the US and China, revolving around soybeans, rare earths, and tariffs. The deal was finalized after a meeting between Presidents Trump and Xi.
The agreement will see the US slash some tariffs and export controls. In exchange, China has agreed to purchase US soybeans, a key commodity for American farmers.
Critically, China also agreed not to tighten restrictions on the export of rare earth minerals or the technology to process them. This led President Trump, who called the meeting “amazing,” to drop his threat of a 100% import tax.
A major concession from the US was the one-year postponement of a new technology measure. This rule, strongly opposed by Beijing, would have barred many Chinese firms from accessing US tech.
Following the deal, President Xi spoke at the APEC forum in South Korea. He called for “genuine multilateralism” and warned against “breaking supply chains,” urging nations to “join hands.”
Soybeans, Rare Earths, and Tariffs: US and China Strike One-Year Truce
