U.S., China Near Trade Deal on Tariffs, Fentanyl

U.S. and Chinese officials are reportedly close to a preliminary trade framework that would see Washington lower some tariffs in exchange for Beijing easing rare-earth export controls and curbing exports of fentanyl precursor chemicals; the agreement remains subject to internal approvals. The prospect of resumed Chinese purchases helped push U.S. soybean futures toward multi-month highs and lift broader grain markets, though analysts warn China may favor South American supplies and may not commit to specific volumes. The talks have buoyed global risk assets — including multi‑year highs in Chinese stock indexes — and strengthened commodity-linked currencies such as the AUD and NZD alongside gains in U.S. equity futures and oil. Investors remain cautious ahead of an imminent Trump‑Xi meeting and an upcoming U.S. Federal Reserve decision, with uncertainty over the timing and size of tariff relief and the firmness of China’s buying commitments shaping near-term market direction.