Trump cuts fentanyl tariffs on China, reaches rare earths deal with Beijing
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U.S. President Donald Trump announced a one-year agreement with China covering rare earths and critical minerals, while also halving fentanyl-related tariffs on Beijing (from 20% to 10%), effective immediately, following his meeting with Chinese President Xi Jinping in South Korea on Thursday.
Quick Insights
The annual review of the rare earths deal may increase volatility for U.S.-listed rare earth stocks due to shifting policy uncertainty and changes in supply chain dynamics.
Lower tariffs could improve trade sentiment and support price appreciation for ETFs tracking S&P 500 and China equities as well as ETF groups exposed to rare earths or manufacturing.
While talks did not include Blackwell chips, ongoing conversation signals potential future opportunity and regulatory risk regarding U.S. chip sales to China, affecting companies like Nvidia.
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Trump cuts fentanyl tariffs on China, reaches rare earths deal with Beijing
