Trump, Xi Announce Trade Truce, Tariff Cuts

President Trump and Chinese leader Xi Jinping met in Busan and agreed to de‑escalate trade tensions by extending a one‑year trade truce and rolling back tariffs, reducing the overall average tariff on Chinese goods from about 57% to roughly 47%. Trump said he would immediately cut the fentanyl‑related tariff from 20% to 10%, and Beijing pledged to resume large U.S. soybean purchases. Beijing confirmed a one‑year suspension of its tightened rare‑earth export controls, and both sides agreed to work to curb fentanyl‑precursor exports. Remaining disputes over technology export limits, chips and apps such as TikTok will be handled in follow‑on negotiations, and officials said no comprehensive final trade pact was signed at the summit, with detailed implementation to be worked out over coming months. Markets responded cautiously—Chinese indices briefly hit multi‑year highs then pared gains and the yuan retreated—as analysts warned structural issues remain.