Trade Truce 2.0: US–China Framework Eases Fears, Lifts Oil and Stocks
trade-wars
A tentative US-China framework from the Kuala Lumpur talks trades a pause on rare-earth export curbs for commitments on soybeans and fentanyl precursors — but the truce is fragile.
The US and China reached a tentative trade framework following talks in Kuala Lumpur, setting up a tariff truce expected to extend past its original November 10 expiration. Beijing is expected to postpone its rare-earth export restrictions for a year, while Washington secured commitments on soybean purchases and fentanyl-precursor controls. Financial markets responded positively, with stocks and oil prices both rising on the improved sentiment — though the gains depend entirely on whether the accords are actually enforced.
Originally published on Substack, October 27, 2025.