US-China Reach One-Year Trade Truce, Cutting Tariffs and Pausing Retaliatory Measures

The United States and China reached a one-year trade truce on Thursday (October 30), with President Donald Trump and President Xi Jinping agreeing to cut tariffs and suspend new export controls that have fueled economic tensions for months.

The deal was announced following a 90-minute meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, marking the first face-to-face talks between Mr. Trump and Mr. Xi since 2019.

Key Terms of the Agreement

Under the agreement, China will pause its planned export restrictions on rare earth minerals for one year. On the U.S. side, Washington will reduce tariffs on Chinese goods to an average of 47%, which includes cutting fentanyl-related tariffs in half to 10%.

Mr. Trump called the meeting "amazing," and said Mr. Xi had agreed to "work very hard" to curb the flow of illicit fentanyl – a major driver of drug overdose deaths in the U.S.

“It was an amazing meeting,” Mr. Trump told reporters aboard Air Force One shortly after leaving South Korea, rating the talks a “12 out of 10.”

For its part, China also committed to purchasing 12 million tons of U.S. soybeans by January and continuing to purchase 25 million tons annually for the next three years, along with U.S. oil and gas.

In return, Washington will delay for one year new restrictions on Chinese companies with ties to U.S.-sanctioned entities and will suspend planned measures targeting China’s maritime and shipbuilding sectors.

A key point for the logistics industry is that both nations also agreed to pause the mutual retaliatory port fees that have been straining global supply chains.

Despite this agreement, the average tariff level between the U.S. and China will remain high – at approximately 47% on Chinese imports and 32% on U.S. exports to China.

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Source: Phaata.com (According to Freight Waves)

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