China Delays Rare Earth Export Controls After Trump-Xi Meeting

China has suspended planned rare earth export controls for 12 months following a breakthrough meeting between Presidents TRUMP and Xi Jinping. The Chinese Ministry of Commerce announced the delay Thursday, reciprocating Washington's decision to postpone expanded restrictions on blacklisted companies.

Tariffs on Chinese goods linked to fentanyl will drop immediately from 20% to 10%, reducing the overall levy on Chinese exports to 47% from 57%. Trump described the rare earth agreement as a one-year deal subject to annual renegotiation, calling the bilateral talks "amazing" with "a lot of decisions made."

Chicago soybean futures fell 1.6% as China committed to resume agricultural purchases, while China's rare earth industry index gained over 2%. The meeting at Gimhae Air Base marked the leaders' first face-to-face discussion in six years, lasting one hour and 40 minutes.

Xi Jinping emphasized dialogue over confrontation in comments carried by Xinhua, with both sides agreeing to maintain working-level communications. The de-escalation comes amid ongoing trade tensions between the world's two largest economies.