US China Expected to Sign Year Long Trade Deal Easing Tariffs Export Controls

The United States and China are on the verge of signing a significant trade agreement aimed at easing tensions and stabilizing global trade between the two largest economies. Following a meeting between President Donald Trump and President Xi Jinping, the deal includes a one-year trade truce featuring tariff reductions and suspensions of planned export controls, notably easing restrictions on rare-earth minerals critical for U.S. manufacturing. The U.S. will cancel a 10% tariff related to fentanyl and suspend expansion of its export restriction "entity list" for a year, while China will adjust countermeasures and suspend some tariffs, including those affecting agricultural imports. This accord is expected to provide modest relief to U.S. consumers by potentially lowering prices on certain imported goods, although some underlying trade issues remain unresolved, limiting immediate widespread benefits. Both countries have agreed to continue extending tariff exclusions and suspend measures targeting specific industries, signaling progress in bilateral trade negotiations. The deal brings hope for greater supply chain stability and improved economic relations amid ongoing trade frictions.