The White House released a fact sheet late Saturday with more details about the trade agreement ironed out between President Trump and China’s President Xi Jinping in South Korea last week,
China will suspend additional export controls on rare earth metals and end investigations into US chip companies, according to the new release. The US will pause some of Trump’s “reciprocal tariffs” on China for another year and will halt plans to slap a 100% tariff on Chinese exports to the US that was set to take effect this month.
The agreement struck between Trump and Xi came after months of chaos and confusion, putting on ice a trade war between the world’s two largest economies.
Here are some other key details we know about the thaw:
The US tariff on goods related to the production of fentanyl will drop from 20% to 10% with a promise China would work “very hard to stop the flow.” That means overall tariffs on Chinese goods will be cut to 47% from 57%.
The US will mediate talks between Beijing and Nvidia’s (NVDA) CEO Jensen Huang over China’s use of restricted chips.
Trump said China would purchase more US energy as part of a wider trade truce, and hinted at an unspecified transaction involving Alaskan oil and gas.
China will resume buying “tremendous amounts” of US soybeans “starting immediately,” Trump said.
Despite questions about the truce’s ultimate durability, the moment represents a milestone for the US and China after Trump amped up trade threats against China almost immediately upon returning to office, rattling markets and unnerving investors.
Read more: What Trump’s tariffs mean for the economy and your wallet
Trump said the US and South Korea had reached a deal after months of negotiating on a framework agreement. Also, Trump and Japan’s first female leader, Sanae Takaichi, signed deals relating to trade and rare earths.
A spat over an ad featuring the late Ronald Reagan has grown into an international incident, with Trump threatening to raise tariffs on Canada by an additional 10%. Trump said he is stopping all negotiations with Canada.
The US Senate passed several resolutions this week that would end several of Trump’s country-specific tariffs, in a rare rebuke of the president from several members of his own party.
Next week, the US Supreme Court is set to hear a challenge to Trump’s most sweeping tariffs — the “reciprocal” country-by-country duties that you can see in the graphic above. A ruling against the tariffs — which would be in line with lower-court decisions — could have significant ramifications for Trump’s tariff strategy.
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Details of China-US trade agreement include curbs on rare earth controls
The White House released a fact sheet on Saturday detailing the agreement reached between the US and China during talks in South Korea this past week. Bloomberg reports; China is going to suspend additional export controls on rare earth metals and end investigations into US chip companies.
