U.S., China Agree One-Year Trade Truce

President Trump and China’s Xi Jinping struck a one-year trade truce at their summit in South Korea that lowers U.S. tariffs on Chinese goods (from about 57% to roughly 47%), rolls back the immediate threat of three‑digit/100% tariffs, and pauses or eases several trade restrictions and port fees. China pledged to resume large-scale purchases of U.S. soybeans — about 12 million metric tons this year and at least 25 million annually in 2026–27 — and agreed to relax recent rare-earth export controls for roughly a year while taking steps to curb fentanyl precursor production. The deal also pauses some U.S. export-control measures and reportedly leaves limited scope for chip exports for AI, though semiconductor export policy and many operational details remain uncertain. Key strategic disputes — including TikTok’s U.S. status, Taiwan, semiconductor-export specifics and transshipment loopholes — were largely deferred, and both sides plan to formalize terms and re-negotiate after the year-long pause. Critics say the pact mainly undoes earlier U.S. measures and leaves bilateral relations structurally fragile.