Trade Truce

After their first meeting since Trump’s second term, President Trump and Chinese President Xi Jinping agreed to a one-year trade deal that pauses export controls and reduces some tariffs.

Context

The US and China have been locked in an intensifying trade conflict since Trump imposed sweeping tariffs on Chinese goods earlier this year. China retaliated with its own tariffs and export restrictions, including controls earlier this month on rare earth minerals that are essential for manufacturing smartphones, electric vehicles, and military equipment, which sparked an escalation in tensions. A previous trade truce had been set to expire next month, threatening the reinstatement of tariffs exceeding 100%.

Deal Details

The leaders met briefly on Thursday in the South Korean port city of Busan, where they were both attending an Asia-Pacific Economic Cooperation forum gathering.