In what could mark a temporary easing of global trade tensions, former U.S. President Donald Trump and Chinese leader Xi Jinping have agreed to a one-year suspension of punitive tariffs that have defined the long-running trade war between Washington and Beijing.
The two leaders met face-to-face in Busan, South Korea, where discussions centered on two of the worldās most strategic resources ā rare earth metals and AI semiconductors.
Trump, who had recently threatened to slap 100 percent tariffs on Chinese imports, agreed to scale those duties back by 10 percent after Beijing reportedly promised to pause new export restrictions on rare earth materials for 12 months. China dominates the global supply chain for these critical minerals, which are vital to manufacturing everything from smartphones and electric vehicles to fighter jets and missiles.
According to The New York Times, the two leaders also discussed semiconductors, with Trump suggesting he might consider allowing NVIDIA to resume AI chip exports to China. The American chipmakerās H20 processors had been reinstated for sale earlier this year, though Chinaās government instructed its major tech companies to halt purchases pending a national security review.
However, NVIDIAās Blackwell chips ā its most powerful AI hardware currently in development ā were notably absent from the discussion, possibly signaling Chinaās shifting strategic interest away from older architectures like the H20.
Meanwhile, TikTokās uncertain future in the U.S. remains unresolved. The Trump administration has hinted at a deal granting the U.S. majority ownership of the appās American operations, but as of now, no final agreement has been reached.
This temporary truce may cool tensions between the worldās two largest economies ā but with both nations vying for dominance in AI technology, critical minerals, and digital influence, the peace could prove fragile.
