U.S. and China Agree to 90-Day Tariff Pause with Rare Earths Deal Pending Approval

U.s. And China Agree To 90 Day Tariff Pause With Rare Earths Deal Pending Approval

Brace yourself: Washington and Beijing just hit pause on their turbo-charged trade war—again.

After two tense days of negotiations in London, U.S. and Chinese officials struck a 90-day truce to prevent tariffs from spiraling further, according to Reuters. The handshake deal isn’t final until Presidents Trump and Xi give the green light, but negotiators say they’ve hammered out the basics.

The framework? The U.S. would hold tariffs at 55% on a chunk of Chinese imports. China, meanwhile, would stick with a 10% rate on American goods. That’s not exactly zero-to-hero, but hey, it’s a cooling-off period.

Beijing reportedly agreed to resume shipments of critical minerals like permanent magnets—essential for everything from electric vehicles to missile guidance systems. In return, Washington would ease up on some export restrictions. Basically, it’s like a tense custody agreement over the global supply chain.

“We’re not popping champagne yet,” one unnamed U.S. official told Bloomberg, “but the knives are back in the drawer—for now.”

Markets gave a cautious thumbs-up. Wall Street ticked upward, and the yuan made a modest climb. But the vibe isn’t exactly euphoria. As analysts noted to Reuters, the truce buys time—not trust.

Over the past few months, Chinese exporters had started flooding Southeast Asian countries like Vietnam and Thailand to dodge U.S. tariffs. According to a Citi Research note cited by Bloomberg, this detour strategy won’t disappear overnight—especially if uncertainty returns.

Still, this deal, thin as it is, might just keep the pot from boiling over before election season kicks into full gear in the U.S.

If Trump and Xi both sign off—and that’s a big if—the truce could buy negotiators breathing room to tackle thornier issues like semiconductors and agricultural exports.

But let’s be real. Trade truces are like reality show relationships. Everyone smiles in front of the cameras, but you never know what’s really going on behind the scenes.