US President Trump and China's Xi Jinping agreed to a one-year trade truce, easing tensions in their trade war, which is crucial for global economic stability.

On October 30, 2025, US President Donald Trump and Chinese President Xi Jinping announced a one-year trade truce during their meeting at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. This agreement aims to de-escalate the trade war that has been affecting global economic stability. Key elements of the deal include China deferring its planned export controls on rare earths and the US dropping a proposed 100 percent tariff on Chinese goods. Trump also agreed to reduce a fentanyl-related tariff from 20 percent to 10 percent, contingent on China's commitment to curb fentanyl flows. Despite these concessions, many existing tariffs and trade barriers remain in place, suggesting that significant disagreements persist. Analysts view this agreement as a minor rollback in tensions, with the potential for annual reviews to adjust the terms as needed.