**Trump Cuts Fentanyl Tariffs on China, Reaches Rare Earths Deal with Beijing**
U.S. President Donald Trump announced a one-year agreement with China covering rare earths and critical minerals. Following his meeting with Chinese President Xi Jinping in South Korea on Thursday, Trump also revealed that fentanyl-related tariffs on Beijing would be halved—from 20% to 10%—effective immediately.
**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 the S&P 500 and China equities, as well as ETF groups exposed to rare earths or manufacturing sectors.
While the talks did not include discussions on Blackwell chips, the ongoing conversations signal potential future opportunities and regulatory risks regarding U.S. chip sales to China, which may impact companies like Nvidia.
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