Sell the rumor, buy the news? The Dow Jones (DJIA) opened Thursday’s trading session in negative territory, despite President Trump announcement of significant progress in U.S.-China trade relations.
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“I had a truly great meeting with President Xi of China,” Trump said in a Truth Social post. “There is enormous respect between our two Countries, and that will only be enhanced with what just took place.”
U.S.-China Reach 1-Year Trade Truce
During a roughly 90-minute discussion in South Korea, the two leaders agreed to a one-year trade truce between the two countries. The terms of the truce include the U.S. lowering its fentanyl tariff on China to 10% from 20%, bringing the overall tariff down to 47% from 57%. In addition, China will increase its U.S. soybean purchases and halt rare earth export restrictions.
Trump added that he expects the truce to be renegotiated at the time of expiration and that he will visit China in April 2026. Xi will visit the U.S. “sometime after that.”
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