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The US announced it will cut tariffs to 47% from 57% and lift curbs on rare earth exports, while China vowed to curb fentanyl exports and restart large farm purchases like soybeans.
The breakthrough came as Donald Trump and Xi Jinping met in South Korea, marking their most constructive discussion in months.
What’s the deal: the new agreement will last a year and be renewed annually.
For months, the two biggest economies have been caught in a trade and tech war, slapping tariffs, banning apps, and blocking exports. But after a 100-minute meeting in Busan, both the leaders agreed to reset ties. Trump will visit China next April, and Xi will travel to the US soon after.
Through the deal, US gets China’s help to curb fentanyl, a deadly synthetic drug driving America’s overdose crisis, while China gains relief from high tariffs and export restrictions that have hurt its economy.
Xi Jinping put it as, “I am ready to continue working with you to build a solid foundation for China-U.S. relations.”
India angle: for India, the thaw is good news too. A calmer trade environment means more stable commodity prices and smoother supply chains.
Expect a positive ripple for metal, chemical, and export-driven stocks with names like Tata Steel, JSW Steel, and Adani Ports likely to benefit as global trade gets a breather.
