Trump, Xi Agree One-Year Trade Truce

President Trump and Chinese President Xi Jinping met in Busan — their first face‑to‑face summit in six years — and agreed to a one‑year trade truce reportedly including a reduction in U.S. tariffs on Chinese goods from about 57% to 47%. They also agreed to resume U.S. soybean purchases, cooperate on rare‑earth exports and strengthen fentanyl controls, though details and formal Chinese confirmation were limited. Markets reacted cautiously: U.S. stock futures and major European benchmarks slipped, mainland Chinese shares eased from ten‑year highs as investors took profits, and big tech earnings added volatility (Meta plunged ~9%, Alphabet jumped ~8.7%, Microsoft lagged). Policymakers tempered enthusiasm — some Fed officials signaled possible easing while Chair Jerome Powell warned a December rate cut was far from assured, and the Bank of Japan kept policy on hold. Economic data were mixed, underscoring that the summit stabilized relations but did not resolve deeper structural issues.