US-China Trade Truce Recap:
U.S. President Donald Trump ended his meeting with Chinese President Xi Jinping as “amazing” and a “12 out of 10,” announcing a one-year trade truce that eases tensions over critical minerals, opioids, and agriculture.
China agreed to suspend its October 9 export controls on rare earth elements, magnets, and other critical minerals for one year, ensuring “open and free” supply flows to the U.S.
Meanwhile, Trump also slashed fentanyl-related tariffs on Chinese goods from 20% to 10%, effective immediately. This drops the overall U.S. tariff rate on China from 57% to 47%.
Regardless, some analysts still see this as a temporary de-escalation rather than a comprehensive reset, especially given ongoing geopolitical conflicts.
Further information:
North Korea: No breakthrough yet; Trump said scheduling remains a hurdle.
Canada: Trump described a “very pleasant conversation” with Prime Minister Mark Carney amid ongoing USMCA review talks.
Russia: Trump revealed ongoing U.S.-Russia discussions on “denuclearization,” expressing hope for a “tremendous” de-escalation involving the US, Russia, and China.
The Central Bank
Following the FED rate cut yesterday, both the Bank of Japan and the European Central Bank maintained their interest rate unchanged this time, with one adopting a less hawkish tone and another saying “From a monetary policy point of view, we are in a good place,” as per the ECB chair Lagarde.
