US and China Reach Landmark Economic and Trade Agreement

Chinese President Xi Jinping and US President Donald Trump reached a trade agreement that could reshape global markets. The deal includes immediate Chinese purchases of American agricultural products and reduced US tariffs on Chinese goods, marking a significant shift in the world's most important economic relationship.

Xi announced that both countries achieved "consensus" on economic and trade issues after meeting with Trump. The Chinese leader said trade teams from both nations exchanged views on major economic matters and found common ground on solutions.

"The two sides need to improve and complete follow-up work as soon as possible, maintain consensus and implement it, and deliver tangible results to calm concerns regarding the economies of China, the United States, and the world," Xi said according to China's Xinhua news agency.

Trump confirmed the breakthrough, agreeing to cut tariffs on Chinese goods to 10%. The reduction comes after discussions about China's handling of the fentanyl crisis. Speaking to reporters aboard Air Force One, Trump said the dispute between the two countries has been "settled."

The deal includes immediate Chinese purchases of "massive amounts" of American soybeans and other agricultural products. This could provide quick relief to US farmers who have faced reduced access to Chinese markets in recent years.

Trump also announced an agreement covering "all rare earth elements" - critical materials used in electronics and military equipment. China controls most of the world's rare earth supply, making this aspect particularly significant for US technology and defense sectors.

The agreement runs for one year and will be renegotiated annually. This structure gives both sides flexibility but also creates ongoing uncertainty for businesses planning long-term investments.

For global markets, this represents a pause in trade tensions that have disrupted supply chains and created economic uncertainty. Investors and multinational companies have been waiting for clarity on US-China relations, which affect everything from manufacturing costs to technology transfers.

Beyond trade, Trump said he and Xi agreed to "work together" on the war in Ukraine, though details of this cooperation remain unclear. This suggests the leaders are trying to coordinate on major global issues beyond their bilateral relationship.