Scott Bessent sums up the US trade deal with China🗽What will change?

U.S. Treasury Secretary Bessent summarized today the agreement reached with Beijing. In his comments to the Financial Times, he said: "The United States and China will sign the deal in the coming week and are confident it will hold (...). An agreement has been reached that — ceteris paribus — we have achieved an equilibrium within which both sides can operate over the next 12 months."

The meeting between Donald Trump and Xi Jinping lasted 1 hour and 40 minutes — shorter than the planned 3–4 hours — as Xi was in a hurry to attend the APEC summit. Trump announced a potential visit to China in April 2026 and rated the talks a “12 out of 10.” The question is: what do we really know?

China agreed to postpone for one year the export restrictions on rare earths announced on October 9, and Trump expects the truce to be renewed annually. However, previous Chinese export controls from April — covering samarium, gadolinium, terbium, and dysprosium — remain in effect.
Beijing will resume imports of U.S. soybeans, and both sides agreed to suspend reciprocal port fees. China will also start purchasing U.S. energy, including potentially LNG from Alaska’s $44 billion reserves. In turn, the U.S. signaled readiness to increase oil and gas exports.
In exchange for China’s concessions and its pledge to combat opioid trafficking, Trump reduced tariffs related to fentanyl from 20% to 10%, bringing the overall tariff rate on China down from 57% to 47% — still higher than those applied to India and Brazil. Washington will also delay by one year the expansion of its trade restriction list for Chinese companies.
Both sides avoided sensitive issues such as Taiwan and Russian oil, focusing instead on the war in Ukraine — agreeing that further escalation would harm both sides and that de-escalation is the goal, especially given the limited time available.
This thaw marks an early stage in a long-term rivalry. Interestingly, the RAND Corporation recently concluded that “victory over China is no longer possible” and that the U.S. should seek peaceful coexistence.
If either side begins to feel stronger, tensions could resurface. For now, markets have likely gained 10–12 months of calm, though renewed escalation cannot be ruled out. The U.S. also emphasized that Blackwell AI technology remains off-limits to China.

As we can see, the trade deal with China hasn’t acted as a short-term catalyst for the S&P 500. It had been largely priced in over the past few weeks, and the framework of the agreement itself came as no surprise to Wall Street. The US500 futures contract is on track to close its third consecutive session in decline.

Source: xStation5

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Scott Bessent sums up the US trade deal with China🗽What will change?

The 'Trade Deal' Is (As For Now) Done

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