The US and China have reached a tentative agreement aimed at preserving tariff rollbacks and easing export controls, marking a fragile but critical step toward stabilizing economic ties between the world’s two largest economies.
Under the framework, both countries will maintain significantly reduced tariffs—around 30% for US duties on Chinese goods, down from 145%, and 10% for China’s retaliatory tariffs, down from 125%.
The agreement also lifts curbs on rare earth exports and partially eases US tech-related export bans.
Chinese and US officials described the deal as a product of the consensus reached during recent talks in Geneva.
A final sign-off is pending from US President Donald Trump and Chinese President Xi Jinping.
Beijing issued a joint statement with Washington calling for continued dialogue and cooperation, saying both sides had held “candid talks” and urged the US to “fulfil promises” and reduce misunderstandings through sustained engagement.
The deal is expected to have immediate effects on sectors including electric vehicles and clean energy—where rare earth supply chains are being restored—semiconductors, aerospace, and agriculture.
Despite the breakthrough, no new market access was guaranteed under the framework, and a so-called tariff snap-back clause allows duties to revert to prior levels without a finalized deal. Structural trade issues such as intellectual property theft and state subsidies remain unresolved.
Market reaction in the US was subdued on Wednesday morning, with futures slightly lower across major indexes. Dow futures fell 0.22%, or 93 points, while S&P 500 and Nasdaq futures declined 0.15% and 0.16%, respectively, reflecting cautious investor sentiment amid lingering uncertainty.