US and China Agree to Cut Tariffs: What’s Next for Trade?

The recent meetings between US President Donald Trump and Chinese President Xi Jinping have led to a significant easing of trade tensions between the two nations. At the APEC summit and subsequent meetings in South Korea, both leaders reached agreements to reduce tariffs and increase cooperation on key economic issues. China agreed to cut tariffs on US goods and boost purchases of American soybeans and rare earth elements. In response, the US will halve its tariffs on Chinese products, and both nations will pause reciprocal port tariffs.

These agreements are viewed as pivotal in de-escalating a prolonged trade conflict that has impacted global markets. However, experts remain cautious about the long-term implications of the deal, as structural issues have not been fully addressed. Despite a temporary truce, uncertainties linger, with potential risks in areas such as nuclear policy and rare earths still present. Nonetheless, the agreements mark a positive step towards stabilizing the economic relations between the US and China. Investors are advised to remain vigilant, as the effectiveness of these measures will be tested in the coming months.