5paisa Capital Ltd
Month-End Volatility Drives Surge in Fed’s Liquidity Tools
by
5paisa Capital Ltd
3rd Nov 2025
U.S.–China Trade Truce: Trump and Xi Agree to Freeze Tariffs and Ease Port, Rare-Earth Restrictions
Summary:
The United States and China have agreed to a one-year trade truce, freezing new tariffs and export restrictions. Under the deal, China will suspend rare-earth export curbs and resume large U.S. farm purchases, while Washington will delay new port fees and lower some import tariffs. The agreement aims to stabilize trade relations and provide time for broader negotiations.
Join 5paisa and stay updated with Market News
In a major diplomatic shift, the United States and China have jointly adopted a temporary truce in their long‐running trade war, announcing an agreement that touches on tariffs, port and shipping fees, and strategic mineral supplies.
At their recent meeting in Busan, South Korea, U.S. President Donald Trump and Chinese President Xi Jinping agreed to freeze the introduction of new tariffs and export restrictions for the next year. China will suspend fresh export curbs on rare‐earth minerals and magnets—a critical sector for high-tech industries globally. In turn, Washington will delay new port fees and shipping‐related duties aimed at Chinese‐flagged vessels.
Key elements of the deal include China’s commitment to resume large-scale purchases of U.S. agricultural products: for example, at least 12 million metric tonnes of soybeans by end-2025, and 25 million tonnes per year for the next three years.
Meanwhile, the U.S. will reduce tariffs on certain Chinese imports linked to precursor chemicals used in fentanyl manufacture, bringing the U.S. tariff rate on Chinese goods down from about 57% to around 47%.
Chinese firms will also benefit from an extension of market-based tariff exclusions to December 31 2026, and several investigations into U.S. firms in the semiconductor supply chain will be terminated. The U.S. will pause for one year the new port fees imposed from October 14 on Chinese-built or flagged vessels.
The 12-month window provided by this deal is intended to give both sides breathing room to negotiate a more durable agreement. For global businesses and supply chains, the resetting of tariffs and the rare-earth development signals relief—but also a reminder that the U.S.–China trade relationship remains a high-stakes terrain.
FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
- Flat ₹20 Brokerage
- Next-gen Trading
- Advanced Charting
- Actionable Ideas
Trending on 5paisa
Global Market Related Articles
Markets Eye 25 bps Cut as Fed Grapples With Patchy Economic Data
by
5paisa Capital Ltd
29th Oct 2025
Wall Street Hits Record Highs as U.S.–China Trade Optimism and Tech Rally Lift Markets
by
5paisa Capital Ltd
28th Oct 2025
Asia Stocks Hit Multi-Year Highs, Dollar Slips as Markets Await Fed Rate Cut
by
5paisa Capital Ltd
16th Sep 2025
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.