Trump, Xi Strike One-Year Trade Truce Amid Global Market Relief

U.S. President Donald Trump and Chinese President Xi Jinping have agreed to a limited trade truce aimed at cooling months of renewed economic tension between Washington and Beijing.

Speaking after talks held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in Busan, South Korea, Trump described the meeting as “very productive,” announcing that the United States would temporarily ease some tariffs on Chinese imports. He added that both sides had “made major progress” toward stabilising relations.

According to Reuters, the agreement includes a one-year suspension of new Chinese export restrictions on rare earth minerals critical resources used in electronics, electric vehicles, and defence manufacturing. Trump said China’s commitment would “secure American supply chains” and help industries reduce dependency on limited suppliers.

China, in a statement released through its Ministry of Commerce, confirmed that both countries had reached “a basic consensus on addressing major trade concerns” and agreed to continue high-level economic dialogue. Beijing’s tone, however, remained cautious, characterising the discussions as “constructive and forward-looking.”

Analysts described the deal as a tactical pause rather than a breakthrough, noting that it stops short of a full trade agreement. Longstanding disputes over technology exports, intellectual property, and market access remain unresolved.

The meeting marked the first face-to-face discussion between both leaders since renewed tariff tensions flared earlier in the year. While markets reacted positively to the news, experts warned that the truce could easily unravel without sustained diplomatic effort from both sides.

Trump, nevertheless, projected optimism, saying he expected “more progress in the coming months” as officials prepare follow-up meetings to address remaining issues.