A new one-year trade truce has been declared between the US and China, built on key concessions involving rare earths, soybeans, and tariffs. Following a meeting between Presidents Trump and Xi, the US will slash some tariffs, while China will buy US soybeans and pause new rare earth restrictions.
The rare earth component is critical, as it defuses Trump’s threat of a 100% import tax on the strategic minerals. The deal also includes a one-year pause on a US tech measure that would have harmed thousands of Chinese firms.
Both leaders were positive about the breakthrough. President Trump described his meeting with Xi as “amazing.” President Xi, in turn, emphasized that “dialogue is always better than confrontation” and urged teams to finalize the details for global “peace of mind.”
Speaking after the deal at the APEC forum in South Korea, Xi promoted this cooperative spirit. He warned against “breaking supply chains” and called for “genuine multilateralism,” urging nations to “join hands rather than letting go.”
The diplomatic thaw is set to continue with high-level visits. Trump announced he will be “going to China in April,” and he expects Xi to visit the US, either in Palm Beach or Washington, D.C., at a later date.