US and China Agree to One-Year Truce on Tariffs Amid Ongoing Trade War
In a surprise move, US President Donald Trump and Chinese leader Xi Jinping have agreed to a one-year pause on punitive tariffs that have been a cornerstone of the ongoing trade war between the two superpowers. The truce comes after high-stakes talks between the leaders in South Korea's Busan city, where they addressed several contentious issues including China's control over rare earth metals and export restrictions on US-based AI chip manufacturer NVIDIA.
The pause in tariffs is seen as a temporary reprieve for both countries, with China agreeing to hold off on new measures that would have imposed 100% tariffs on certain imports from the US. In exchange, Trump has agreed to lower Chinese tariffs by 10%. The move marks a significant shift in the trade war, which has been marked by escalating tensions and reciprocal sanctions between the two nations.
During their talks, Trump reportedly discussed semiconductors with Xi and did not rule out the possibility of allowing NVIDIA to sell its AI chips to China. This could be seen as a major concession, given that Beijing had initially banned US-based companies from selling H20 chips in China. However, it remains to be seen whether the move will help to ease tensions or simply allow Chinese tech giants to continue doing business in the US.
The truce also leaves out other contentious issues such as TikTok's future in the US. The Trump administration had claimed to be close to a deal that would see the US gain majority ownership of the Chinese-owned social media giant, but no agreement has been finalized at this time.
Overall, the one-year pause on tariffs is seen as a temporary reprieve for both countries, and it remains to be seen how long this truce will last. As the trade war continues to simmer in the background, it's unclear whether this deal will lead to a more permanent resolution or simply allow both sides to kick the can down the road until next year.
In a surprise move, US President Donald Trump and Chinese leader Xi Jinping have agreed to a one-year pause on punitive tariffs that have been a cornerstone of the ongoing trade war between the two superpowers. The truce comes after high-stakes talks between the leaders in South Korea's Busan city, where they addressed several contentious issues including China's control over rare earth metals and export restrictions on US-based AI chip manufacturer NVIDIA.
The pause in tariffs is seen as a temporary reprieve for both countries, with China agreeing to hold off on new measures that would have imposed 100% tariffs on certain imports from the US. In exchange, Trump has agreed to lower Chinese tariffs by 10%. The move marks a significant shift in the trade war, which has been marked by escalating tensions and reciprocal sanctions between the two nations.
During their talks, Trump reportedly discussed semiconductors with Xi and did not rule out the possibility of allowing NVIDIA to sell its AI chips to China. This could be seen as a major concession, given that Beijing had initially banned US-based companies from selling H20 chips in China. However, it remains to be seen whether the move will help to ease tensions or simply allow Chinese tech giants to continue doing business in the US.
The truce also leaves out other contentious issues such as TikTok's future in the US. The Trump administration had claimed to be close to a deal that would see the US gain majority ownership of the Chinese-owned social media giant, but no agreement has been finalized at this time.
Overall, the one-year pause on tariffs is seen as a temporary reprieve for both countries, and it remains to be seen how long this truce will last. As the trade war continues to simmer in the background, it's unclear whether this deal will lead to a more permanent resolution or simply allow both sides to kick the can down the road until next year.
gotta say, this one-year truce is like, super weak sauce 
. both us and china are just kicking the can down the road till 2026 
. what's the real deal? who really benefits from this truce? 
i mean, chinese tech giants getting to sell their AI chips in the us without any issues? 
that's like giving them a free pass 
. and what about tiktok? still a mystery 
. doesn't seem like this truce is gonna lead to anything concrete 
.
. And semiconductors? That's like, a whole different level of cool (I'm a huge gamer, btw). But let's get real, this truce isn't without its risks... what about TikTok? 
Is the US really gonna get majority ownership or is that still up in the air? I don't know how long this truce will last but for now, I'm just gonna enjoy the fact that we're not stuck in some kind of trade war nightmare 
.
a one-year truce on tariffs is def a win for us! I've been worried sick about the future of NVIDIA and how they'd get their AI chips into China lol now it seems like Trump actually listened to Xi (for once) 
and it's kinda cool that he mentioned semiconductors during their talks 
so fingers crossed it works out!! 
i mean the tech thing is still up in the air tho, i'm low-key hyped for nvidia to sell those ai chips to china though 
But seriously, this pause in tariffs is just a temporary reprieve, we all know that the trade war will likely continue to simmer in the background.
. I'm not sure if that's enough of an incentive for China to lift their restrictions on NVIDIA or other US-based companies, but hey, it's worth a shot, right? 
. The Trump admin had been pushing for US control of that platform, and I don't think they're giving up on that fight anytime soon.
. Will it lead to a more permanent resolution or just kick the can down the road again? Only time will tell 
.
. not sure how much of a win this really is for the US...
just heard that Trump and Xi agreed on a one-year truce on tariffs!!! 
can't believe how far we've come already, from all those escalations between them 
I mean, who wouldn't want to see US-based companies like that being able to sell their chips in China? 
fingers crossed this truce stays strong and we get more positive vibes from the trade war 
I mean, think about it - a whole year without those pesky tariffs! It's like, a mini-vacation for businesses on both sides 
The fact that Trump is lowering Chinese tariffs by 10% and they're not imposing new measures on US imports is straight fire 
And did you see the semiconductors discussion? Like, NVIDIA can now sell their AI chips to China? Game. Changer. 
.
Trump talking to Xi about it and apparently didn't rule out allowing NVIDIA to sell its AI chips to China... that's like, a major concession right there 
. The Trump administration was all up in arms about getting majority ownership of the thing, and now it just seems like they're pushing it to the back burner 
. Like, one wrong move and it's all over again 
. Can we please just have a permanent peace treaty or something?! 
It's not like they're going to magically solve all their trade issues just because they agreed to pause it for now. China still has some major screws loose when it comes to intellectual property theft and the whole TikTok thing... 
! According to Reuters, there's been a 14% drop in S&P 500 since Jan 2022 
. Meanwhile, China's GDP growth rate has slowed down from 6.1% in 2019 to 4.5% in 2020 
.
.
.
. But at the same time, it feels like we're just kicking the can down the road, you know? Like, what if they both get tired of this pause thing after a year and start fighting again? 
.