>
Trump and Xi reach limited trade deal and suspend measures on rare earths and semiconductors
Although the agreement offers a temporary truce, experts warn that the commitments will only last for a year
The White House announced Saturday that the United States and China have reached a new agreement to temporarily reduce trade tensions. Beijing will lift export controls on strategic metals – such as gallium, germanium and graphite – while Washington will suspend reciprocal tariffs planned for November.
“The agreement will bring peace and prosperity to both countries,” Trump said. The pact also includes a reduction in the fentanyl tariff from 20% to 10% and a Chinese commitment to buy 12 million tons of American soybeans this year, with a minimum of 25 million tons annually over the next three years.
The understanding will also allow Dutch manufacturer Nexperia’s Chinese facilities to resume chip shipments, which could ease pressure on the global supply chain.
Although the agreement offers a temporary truce, experts warn that the commitments will only last a year. “It is a truce in the trade war, not the end of it,” said Professor Josef Mahoney of East China Normal University.
The pact comes after the “G2” meeting in Busan, where Trump guaranteed that “the relationship between the United States and China has never been better”.