Trump and Xi Agree to One-Year Trade Truce, Easing Global Tensions

In a long-awaited meeting in South Korea, U.S. President Donald Trump and Chinese President Xi Jinping reached a one-year trade truce, marking a significant de-escalation in trade tensions between the world’s two largest economies.Under the agreement, Washington will cancel the 10% “fentanyl tariff” and suspend the 24% duties on Chinese goods — including those from Hong Kong and Macau — for a year. In return, Beijing will roll back its own retaliatory tariffs and maintain existing exemptions. Both sides also agreed to pause new export controls, including U.S. restrictions on Chinese subsidiaries announced in late September and China’s measures targeting American industries introduced in early October.The deal is expected to resolve the Nexperia dispute that has disrupted Europe’s semiconductor supply chain and avert a potential shutdown in global car production.Meanwhile, as widely anticipated, the Federal Reserve cut interest rates by 25 basis points, though Chair Jerome Powell’s cautious tone disappointed investors seeking clarity on the path ahead.In Europe, France’s economy surprised to the upside, expanding 0.5% in the third quarter, double analyst expectations, despite ongoing political gridlock. In the Netherlands, voters shifted toward the center as support for the far-right waned; Democrats 66 is projected to win 26 seats in the 150-member parliament, positioning it as a potential kingmaker in the next coalition government.On the corporate front, Société Générale reported better-than-expected earnings as cost-cutting measures took hold, while ING Group announced a €1.1 billion share buyback and raised its revenue outlook.