The recent meeting between Chinese President Xi Jinping and U.S. President Donald Trump provided Beijing with short-term relief, allowing it to slow the pace of economic decoupling from Washington, according to Capital Economics. While the reversal of certain U.S. tariffs offers limited immediate economic benefits, it removes the looming threat of major hikes that could have slashed China’s GDP by up to 2%.
China’s Ministry of Commerce confirmed that the U.S. has reduced tariffs on fentanyl-related products from 20% to 10% and paused its investigation into China’s shipbuilding sector. Trump also suggested a possible easing of export restrictions on Nvidia chips, though the most advanced Blackwell models remain off-limits. Julian Evans-Pritchard, Head of China Economics at Capital Economics, noted that the de-escalation “removes a key downside risk to the near-term outlook.”
The U.S. has also suspended the Bureau of Industry and Security’s entity list affiliate rule, cutting the number of Chinese firms under sanctions. In return, China agreed to boost agricultural imports from the U.S. and delay new export controls for a year. Despite these concessions, the average U.S. tariff rate on Chinese goods remains around 30%—triple the pre-Trump era level. Capital Economics estimates that rolling back part of this year’s tariff hikes could add just 0.1% to China’s GDP, as any gains may be offset by currency appreciation.
Trump hinted that a broader trade deal might be finalized during his planned Beijing visit in April 2026, suggesting ongoing efforts to stabilize relations. However, Evans-Pritchard cautioned that a renewed rupture remains possible. Even if a deal is struck, it will likely mirror the previous “Phase One” framework, focusing on trade balance rather than resolving deep geopolitical tensions. Both nations continue to pursue economic self-reliance—Washington through supply chain diversification and China through technological independence and financial autonomy.


New Epstein Photos Surface Showing Trump as Lawmakers Near Document Release Deadline
Trump Signals Two Final Candidates for Fed Chair, Calls for Presidential Input on Interest Rates
Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade
Ukraine, US and Europe Seek Unified Peace Framework With Security Guarantees for Kyiv
Trump Signals Conditional Push for Ukraine Peace Talks as Frustration Mounts
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs
Trump Claims Pardon for Tina Peters Despite No Legal Authority
Judge Orders Return of Seized Evidence in Comey-Related Case, DOJ May Seek New Warrant
U.S. Soldiers Killed in ISIS Attack in Palmyra, Syria During Counterterrorism Mission
Preservation Group Sues Trump Administration to Halt $300 Million White House Ballroom Project
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen
Bolivia Orders Pre-Trial Detention of Former President Luis Arce Over Embezzlement Probe
Mexico Moves to Increase Tariffs on Asian Imports to Protect Domestic Industries
Fed’s Dovish Tone Sends Dollar Lower as Markets Price In More Rate Cuts
U.S. Lifts Sanctions on Brazilian Supreme Court Justice Amid Shift in Brazil Relations 



