US, China Agree One-Year Trade Truce

President Donald Trump and Chinese leader Xi Jinping met in Busan in their first face-to-face talks since 2019 and agreed to a one-year trade truce. As part of the understanding, China agreed to pause planned rare-earth export controls for one year and the United States said it would ease certain tariffs, including cutting fentanyl-related tariffs from 20% to 10% (reducing average duties from about 57% to 47%). China pledged to resume large purchases of U.S. farm goods, with U.S. officials describing soybean purchases of roughly 25 million metric tons annually, starting with about 12 million tons before January. Both sides pledged continued cooperation to curb illegal fentanyl ingredient flows. The leaders also discussed technology issues, with Trump saying China would be barred from receiving next‑generation “Blackwell” AI chips, and TikTok ownership was raised; Taiwan was reportedly not discussed. Officials and market analysts cautioned the truce appears tentative and largely nonbinding, with many implementation details to be formalized later.