President Trump announced Thursday that the US would halve its fentanyl-related tariffs on Chinese goods as part of a reset in relations that includes China stepping back from its promise to restrict rare earth mineral exports for a year.
Other parts of the limited agreement Trump outlined https://finance.yahoo.com/news/trump-leaves-meeting-with-china-promising-a-tariff-lowering-and-some-near-term-stability-in-the-relationship-110718771.htmlafter a summit with Chinese President Xi Jinping in South Korea include increased purchases of US soybeans, more actions from China on the issue of fentanyl, the suspension of some shipping fees, and a visit by Trump to China now penciled in for next April.
Trump promised additional details were in the offing and told reporters Thursday that it had been a highly productive meeting and that a formal deal would be signed "pretty soon."
The terms outlined are likely to provide markets with a measure of stability in the relationship between the world's two largest economies, at least into next year.
"The deescalation takes the immediate threat of large tariff hikes off the table, removing a key downside risk to the near-term outlook," Capital Economics noted in an analysis Thursday, adding that underlying issues remain unresolved and, as such, "both sides will continue to pursue wider decoupling efforts."
