U.S. and China Agree to Stick to Prior Trade Truce After Tensions Escalated
New York Times5 days
This framework represents crucial progress in preventing economic warfare between the world's largest economies. The deal addresses China's weaponization of rare earth exports while offering a path to reduce crippling tariffs that have damaged global supply chains. Smart diplomacy prevailed over destructive confrontation.
President Trump just scored a massive win for American workers and industry. The China deal delivers rare earths on U.S. terms, imposes 55% tariffs on Chinese goods, and maintains a strong, cooperative relationship with China while reasserting U.S. leverage in global trade. This is Trump at his best — tough, strategic, and unapologetically pro-America. The ripple effects will supercharge the economy and redefine U.S. dominance in global trade.
The agreement lacks substance and represents another temporary bandage on fundamental trade imbalances. China continues to manipulate critical mineral exports while the US maintains necessary technology restrictions to protect national security interests. Real structural changes remain elusive.
The newly announced framework may signal progress, but it stops short of resolving the deep-rooted structural issues that have long plagued U.S.-China trade. Without clear commitments or enforcement mechanisms, it risks becoming yet another temporary pause rather than a lasting solution. Markets remain cautious, noting that trust is fragile — and tariffs are likely to remain high regardless.
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