U.S.–China Trade War Ends as Trump Cuts Tariffs

● According to The Kobeissi Letter, President Trump just killed the planned 100% tariff on Chinese goods, marking the end of the latest trade war chapter. Instead, he's cutting the fentanyl tariff from 20% to 10% and dropping the overall China rate from 57% to 47%. The two countries also locked in a one-year rare earths deal for critical minerals.

● The Stakes The original 100% tariff would've hammered supply chains, spiked consumer prices, and potentially bankrupted smaller importers. Economists worried prolonged escalation could drive businesses to more stable regions. The softer approach eases pressure on U.S. producers and gives relief to companies drowning in import costs.

● Financial Impact Lower tariffs mean less customs revenue short-term, but analysts expect higher trade volumes and manufacturing output to eventually boost tax collections. Industry voices say this trade-driven growth offers a more sustainable path than aggressive tariff walls.

● Broader Context The move also thaws relations. President Xi is visiting the U.S. after what Trump called an "amazing meeting," with Trump heading to China in April. The rare earths agreement stabilizes a critical sector for tech and renewable energy. Experts estimate the deal could restore tens of thousands of jobs and expand tax revenues on both sides.