US and China Seal Trade Deal 🇺🇸🇨🇳

The United States and China have reached a framework trade agreement aimed at easing tensions after months of tariff escalations and export curbs.

The deal, struck during President Donald Trump’s meeting with Chinese President Xi Jinping in South Korea, includes partial tariff reductions, renewed Chinese purchases of U.S. farm goods, and a one-year suspension of rare-earth export controls.

Both sides also agreed to cooperate on fentanyl precursor regulation as part of broader economic talks.

🇨🇳 Lower China Tariffs: The 20% tariffs on China related to fentanyl are now being reduced to 10%, lowering the overall effective tariff rate on Chinese imports from 57% to 47%.

🪨 Rare Earth Truce: As part of the deal, China has agreed to pause for one year the sweeping export controls on rare earths. President Donald Trump told reporters he expects the pause to be “very routinely extended as time goes by.

🫛 So(y) Happy: Under the new trade framework, China agreed to buy 12 million metric tons of American soybeans this season, followed by 25 million tons annually for the next three years.

The US Senate on Thursday voted to strike down President Donald Trump’s sweeping “reciprocal” tariffs on more than 100 countries announced in April, marking one of the most significant bipartisan challenges to his trade agenda since his return to office.

🤝 Bipartisan Support: The resolution passed 51–47, with four Republican senators — Susan Collins, Mitch McConnell, Rand Paul, and Lisa Murkowski — joining Democrats in support.

🇨🇦🇧🇷 Back-to-Back: The resolution followed two earlier votes this week — both aimed at rolling back tariffs on imports from Canada and Brazil.

What’s the back story? In April, President Trump introduced sweeping new trade measures — a 10% blanket tariff on all countries, along with additional “reciprocal” tariffs targeting nations with the biggest trade imbalances with the U.S.

The decision sparked a wave of diplomatic talks aimed at easing the duties and drew a legal challenge from U.S. businesses, which is now set to reach the Supreme Court in the coming weeks.

U.S. President Donald Trump’s renewed trade policy has led Japan and South Korea to commit a combined $900 billion in U.S. investments in exchange for lower tariffs — a move aimed at reducing their large trade surpluses with Washington.

Japan has agreed to invest up to $550 billion, while South Korea has pledged $350 billion. Both agreements were key to securing trade deals reached in July 2025, which lowered across-the-board tariffs from a threatened 25% to 15%, though auto tariffs of 25% remain.

A U.S. investment committee, led by Commerce Secretary Howard Lutnick, will select the Japanese projects — expected to include ventures in energy, artificial intelligence, and critical minerals.

South Korea has agreed to split its $350 billion investment pledge into two components — $200 billion in cash, to be paid in phased installments capped at $20 billion per year, and $150 billion earmarked for shipbuilding cooperation, including loan guarantees, ship financing, and investments by Korean shipbuilders.

European automakers have warned that they may be forced to halt production within days due to a shortage of Nexperia chips, following an export freeze imposed by China on the Dutch chipmaker’s components made in China.

The European Automobile Manufacturers’ Association (ACEA) said on Wednesday that automakers are relying on rapidly depleting chip reserves, with some already preparing to suspend operations. The shortage affects basic semiconductors used in vehicle control units, which are essential for car production.

The disruption stems from Beijing’s decision to block exports from Nexperia’s Chinese facilities after the Dutch government seized control of the company under emergency powers, citing national security and strategic technology concerns. Nexperia is owned by China’s Wingtech Technology Co.

Samsung Electronics announced plans to establish a new “AI Megafactory” powered by 50,000 Nvidia GPUs to automate semiconductor manufacturing processes for mobile devices and robotics.

The new factory will integrate Nvidia’s Blackwell-generation GPUs with Samsung’s chip lithography systems, a combination Nvidia claims could improve production performance by 20 times.

The project marks one of the largest corporate GPU deployments globally and strengthens Samsung’s collaboration with Nvidia, whose chips remain critical for advanced artificial intelligence systems. Samsung did not specify when construction of the facility would begin.

The partnership follows Nvidia CEO Jensen Huang’s visit to South Korea earlier this week, during which he met with Samsung Chairman Lee Jae-yong and other business leaders. Nvidia said similar large-scale GPU deployments are underway at SK Group and Hyundai.

China’s manufacturing activity contracted more sharply than expected in October, with the official Purchasing Managers’ Index (PMI) falling to 49.0, its lowest level in six months, according to data from the National Bureau of Statistics (NBS).

The reading missed economists’ forecasts of 49.6 in a Reuters poll and marked a decline from 49.8 in September, extending the sector’s contraction streak that began in April, when the United States renewed its tariff campaign.

The report showed continued weakness across key sub-indices, including production, new orders, raw material inventories, and employment, all of which remained below the 50-point threshold separating growth from contraction.

The U.S. and Japan have signed a nonbinding framework to strengthen cooperation on critical minerals and rare earths, aiming to reduce dependence on China. The deal, signed in Tokyo by President Donald Trump and Prime Minister Sanae Takaichi, focuses on joint investments in mining, processing, and recycling.

Over the next six months, both nations will identify and fund projects to deliver mineral products to domestic and allied markets. A new U.S.–Japan Critical Minerals Rapid Response Group will coordinate efforts and address supply vulnerabilities.

The framework also explores mutual stockpiling and mineral recycling technologies. Analysts say the move prevents overlapping strategies among allies and aligns with Washington’s broader push to diversify supply chains. The pact follows a similar U.S.–Australia agreement signed last week.

COSCO Shipping Holdings, China’s largest state-owned container carrier, reported a 55% decline in third-quarter profit and a 20% drop in revenue, hit by weak demand and the impact of U.S.–China trade tensions.

The company’s Q3 net profit fell to 9.53 billion yuan ($1.3 billion) on revenue of 58.49 billion yuan ($8.2 billion), down from a year earlier as transpacific revenue plunged 34% to 14.54 billion yuan. Shipping volume on China–U.S. routes slipped 4.2% to 1.2 million TEUs, even as total cargo volume rose slightly due to strong domestic activity.

COSCO attributed the slump to tariff pressures, geopolitical uncertainty, and a 21.9% year-on-year fall in freight rates, measured by the China Export Containerized Freight Index. The company is expected to benefit modestly from the U.S.–China trade truce reached this week

Aluminum prices on the London Metal Exchange (LME) surged to a three-year high last week as tightening inventories, strong Chinese demand, and geopolitical disruptions fueled market gains.

Average prices reached $2,811 per ton during the week of October 20–24, up 2.1% week-on-week, and closed at $2,852/t on Friday. LME warehouse inventories dropped 3.8% to 480,915 tonnes, reflecting tighter supply conditions.

According to reports, demand from China’s renewable energy and transportation sectors continues to strengthen, while conflicts in Eastern Europe and the Middle East, as well as sanctions on Russia, have constrained global supply. A weaker U.S. dollar and renewed U.S. tariffs on aluminum imports have added upward pressure on prices.

Boeing has delayed the first delivery of its long-awaited 777X jet to 2027 and taken a $5 billion charge, deepening the financial strain on its flagship wide-body program, which has already been hit by years of setbacks.

The latest charge brings total costs tied to the 777X delays to more than $15 billion, as certification and production hurdles continue to mount. The aircraft is central to Boeing’s wide-body strategy following the phase-out of the 747 and the slowing of 777 deliveries, but repeated postponements have allowed Airbus’s A350 to gain market share.

Despite the loss, Boeing’s revenue rose 30% year-on-year to $23.27 billion, surpassing forecasts, while free cash flow turned positive at $238 million for the first time since 2023.

The company continues to ramp up 737 MAX production to 42 aircraft per month and plans to raise 787 Dreamliner output to eight per month.

Global shipping lines are beginning to test routes through the Red Sea and Suez Canal again, following months of avoidance due to Houthi militant attacks on merchant vessels.

According to reports, CMA CGM has sent two large container ships — CMA CGM Benjamin Franklin and CMA CGM Zheng He — on the Europe–Asia NEU4 service via the Suez Canal, marking the first alliance service return to the region since late 2023.

The Russian LNG tanker Arctic Metagaz is also en route through the Gulf of Aden and could become the first LNG carrier in eight months to transit the Suez.

The tentative Israel–Hamas ceasefire reached earlier in October has led to speculation that Red Sea traffic may gradually resume. The Houthis, who claim attacks on commercial ships in support of Palestinians, have carried out over 100 assaults since late 2023, but no incidents have been reported this month.

Oil prices fell for a third consecutive month on Friday as a stronger U.S. dollar and abundant global supply outweighed the impact of sanctions on Russian exports.

Brent crude dropped 0.5% to $64.67 per barrel, while West Texas Intermediate slipped 0.6% to $60.22, putting both benchmarks on track for about a 3% monthly decline.

Analysts attributed the losses to a firm dollar, which dampened investor appetite for commodities. Supply growth from major producers also affected prices. OPEC+ members are reportedly considering a modest output increase at their upcoming meeting, having already boosted production by 2.7 million barrels per day in recent months.

Data from the Joint Organizations Data Initiative (JODI) showed Saudi crude exports at a six-month high of 6.4 million barrels per day. At the same time, U.S. production hit a record 13.6 million bpd, according to the Energy Information Administration.