The US and China have agreed to a one-year trade truce following a summit between Donald Trump and Xi Jinping in South Korea. Key elements include suspending tit-for-tat export restrictions on rare earths and semiconductors, critical to global supply chains, and scaling back tariffs linked to fentanyl and shipping. The summit comes six months after Trump imposed 145% tariffs on Chinese goods, prompting a 125% retaliatory levy from Beijing, effectively triggering a de facto trade embargo. While this deal marks a pause in hostilities and paves the way for broader negotiations, it remains tactical, not strategic, with Taiwan notably absent from discussions. Markets were subdued, with US futures and Asian equities largely flat.