In a major shift in U.S. China relations, President Donald Trump announced that his administration will reduce tariffs on Chinese imports from about 57 % to 47 % after a summit with Chinese President Xi Jinping in South Korea. In return, China pledged to delay export restrictions on rare earth minerals for at least one year, resume large scale purchases of U.S. soybeans and strengthen its efforts to stem the flow of fentanyl precursor chemicals. 

While the agreement has injected optimism into markets and eased immediate trade tensions, analysts caution it is largely a tactical pause rather than a full resolution of deeper structural issues. Key areas such as advanced technology exports, China’s broader industrial subsidies, and U.S. national security trade controls remain on the table for future negotiations.