Trump and Xi Reach Trade Deal Cutting Tariffs, Easing Rare Earth Curbs

WF

WORLD FAST 24/7 NEWS — International

Trump and Xi reach one-year trade pact: tariffs cut, rare-earth curbs paused

By World Fast Desk — 30 October 2025 • Busan / Seoul / Washington

Trump and Xi reach one-year trade pact: tariffs cut, rare-earth curbs paused — photo from summit. Image: [Photographer Name / Agency]

US President Donald Trump and Chinese President Xi Jinping agreed a one-year trade pact on Thursday that trims US tariffs on Chinese goods and pauses Beijing's recent rare-earth export curbs, marking a notable de-escalation between the world’s two largest economies. :contentReference[oaicite:0]{index=0}

Key points: tariffs reduced (Trump said overall tariffs fall to 47% from 57%), China suspends recent rare-earth export controls for one year, and both sides sign limited understandings on agricultural purchases and controls on illicit fentanyl precursor flows. :contentReference[oaicite:1]{index=1}

The leaders met in South Korea on the sidelines of a regional summit in a meeting described by US and Chinese officials as constructive and focused on stabilising trade frictions that have rattled global markets this year. President Trump characterised the talks as “amazing” and said the agreement would be reviewed annually. :contentReference[oaicite:2]{index=2}

Details in official statements remain sparse, but both sides issued separate confirmations: Washington announced targeted tariff reductions and concessions linked to fentanyl-related measures and agricultural purchases, while Beijing’s commerce ministry said it would suspend certain export licensing and controls on rare-earth related technologies for 12 months. Analysts noted the pact is a tactical truce rather than a comprehensive resolution of underlying strategic competition. :contentReference[oaicite:3]{index=3}

Why rare earths matter

Rare earths — a group of elements used in everything from electric vehicle motors and wind turbines to military hardware and consumer electronics — have been a flashpoint in trade diplomacy because China supplies a large share of global production and processed material. Beijing’s October export measures, announced earlier this month, had raised concerns among manufacturers and governments outside China. The one-year suspension is intended to ease immediate supply-chain pressure while talks continue. :contentReference[oaicite:4]{index=4}

Markets and industry reaction

Global markets reacted to the news with relief: shares in companies reliant on magnet and rare-earth supply chains saw muted volatility after initial spikes, while futures tied to certain commodities eased. Industry groups welcomed the suspension but cautioned that long-term certainty requires deeper, binding arrangements and increased diversification of supply chains. :contentReference[oaicite:5]{index=5}

Political readings and caveats

Observers described the pact as a pragmatic, time-limited de-escalation rather than a resolution of strategic rivalry. Commentators warned that the arrangement appears to defer some hard decisions — such as semiconductor export controls, industrial subsidies and broader technology restrictions — to future negotiations, leaving open the possibility of renewed tension if compliance falters. :contentReference[oaicite:6]{index=6}

Washington’s move to roll back selected tariff measures was framed by the White House as reciprocal and conditional; officials emphasised the reductions are linked to China’s commitments on supply-chain access, fentanyl precursor enforcement and agricultural purchases. Beijing, meanwhile, presented the pause on rare-earth curbs as a step that protects global industry while preserving sovereign policy space. :contentReference[oaicite:7]{index=7}

What happens next

The pact is set to last for one year, at which point leaders will review the arrangements. Experts expect follow-up talks at ministerial level to flesh out technical details — notably on licensing procedures for rare-earth related exports, the timeline and scope of tariff cuts, and monitoring mechanisms to verify compliance. Until formal instruments are published, many corporations will continue contingency planning. :contentReference[oaicite:8]{index=8}

Takeaway

For now, markets and manufacturers gain breathing space and the immediate risk of a sharp escalation — including higher punitive tariffs and tighter export controls — has receded. Yet the deal’s limited duration and the absence of a full, transparent agreement mean uncertainty remains. Policymakers and businesses will be watching closely to see whether the one-year hiatus becomes a stepping stone to deeper cooperation or a temporary lull in an extended rivalry. :contentReference[oaicite:9]{index=9}

#USChina

#TradeDeal

#RareEarths

#Tariffs

➡ Stay tuned to WORLD FAST 24/7 NEWS for verified updates as this story develops.

Sources: Reuters, Al Jazeera, The Washington Post, Times of India, LiveMint. :contentReference[oaicite:10]{index=10}