Trump and Xi Forge New Agreements, Easing Trade Tensions and Impacting Global Markets

Trade Relations - President Trump announced a 50% reduction in tariffs on Chinese fentanyl, lowering the rate from 20% to 10% effective immediately [2][9] - Further easing of trade tensions was confirmed with the resolution of rare earth matters and China's commitment to continue exports, alongside a general tariff reduction from 57% to 47% [3][9] - China is set to begin immediate purchases of soybeans, with a one-year agreement in place expected to be extended [3][9] Market Reactions - Gold prices surged over 1% to $3,978.71 per ounce following the announcements [4][9] - European and US equity futures experienced slight declines, with EuroStoxx 50 down 0.2%, DAX down 0.1%, and FTSE down 0.3% [4][9] Geopolitical Discussions - Discussions included collaboration on resolving Ukraine issues, with no mention of Taiwan [5][9] - Talks regarding chip purchases with companies like Nvidia are anticipated, although Blackwell chips were excluded from recent discussions [5][9] Future Engagements - President Trump announced a trip to China scheduled for April, with President Xi Jinping expected to visit the US afterward [7][9]