BREAKING: U.S.-China Trade De-Escalation
In a significant move following high-level talks, the United States has extended the suspension of its 24% reciprocal tariffs on Chinese imports for one full year.
Additionally, Washington will suspend for one year the new "50% rule" expanding Entity List export controls—easing restrictions on affiliates owned at least 50% by listed entities.8af7a1fc3f1403cf4d
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2/5: The Tariff Context
These reciprocal tariffs—imposed as retaliation to China's duties—were previously paused amid negotiations. The one-year extension maintains a 10% baseline tariff, providing certainty for U.S. importers and averting a sharp cost spike on billions in goods.
This aligns with President Trump's strategy: leverage for concessions, including China's halt on rare-earth export curbs.6a3d03
3/5: Entity List Relief
The "50% rule," finalized by the Commerce Department in September, automatically extended export bans to subsidiaries and affiliates.
Suspending it for a year unlocks U.S. tech exports (chips, software) to China—a boon for firms like NVIDIA and supply chains in semiconductors—while preserving core national security guardrails.a8df3a
4/5: Market Implications
Equities rally: Tech & industrials lead as trade fears fade.
Commodities shift: Copper dips from highs; rare earths stabilize.
Crypto surges: Risk-on sentiment fuels Bitcoin above $100K.
Global supply chains breathe easier—expect Q4 earnings upside from reduced friction.3c90e5
5/5: What's Next?
This 90-day truce evolution into a yearly pause signals pragmatic diplomacy over escalation. Watch for:
✅ Formal White House EO
✅ BIS guidance on suspensions
✅ Phase 2 talks (IP, fentanyl)
Trade wars cool, markets heat up. 📈
