#USChinaDeal Reduction of tariffs and suspension of commercial hostilities

The agreement stipulates that the United States will avoid increasing tariffs by up to 100% on certain Chinese goods, just as — on the other hand — China will suspend restrictive measures on the export of strategic materials such as rare earths and critical minerals (gallium, graphite, germanium, etc.).

In practice, it is a "truce" that temporarily stabilizes the trade war that had affected many global supply chains.

• Resumption of U.S. purchases by China

As part of the understanding, China has committed to resuming significant purchases of U.S. agricultural products, such as soybeans, timber, etc.

In addition, there would be an intention to remove some sanctions and restrictions imposed on certain products/technologies, for the benefit of U.S. companies.

• Access to critical resources for the industry and stability in global supply chains

Thanks to the abolition (or suspension) of Chinese restrictions on rare earths and strategic materials, American (and global) industries — particularly high-tech ones — will be able to gain easier access to raw materials often essential for semiconductors, batteries, advanced technologies, etc.

• A redesign (at least temporary) of the risk for global supply chains

The agreement aims to stabilize the international context: fewer tensions, fewer immediate countermeasures, more predictability for companies operating between the U.S., China, and also Europe.