""The Vanguard S&P 500 ETF ( NYSEMKT: VOO) ran up 0.8% premarket as investors bet on a likely truce in the latest U.S.-China trade war this morning. On Sunday, reports began filtering out that a "very successful framework" (as Treasury Secretary Scott Bessent described it) had been agreed upon by trade negotiators - and that Presidents Trump and Xi might finalize a trade truce in a meeting as early as Thursday."
""What's in the box," you ask? A repeal of President Trump's threat to impose additional 100% tariffs on Chinese exports to the U.S. on one hand. And on the other, a repeal of China's threat to restrict sales of rare earth elements to U.S. companies. Side benefits could include finalizing the details of a sale of TikTok's U.S. operations to a consortium of Western investors, and also a resumption of U.S. soybean purchases by China."
U.S. and Chinese negotiators appear to have agreed on a trade framework that could end the recent trade standoff and reopen Chinese purchases of U.S. soybeans. The Vanguard S&P 500 ETF rose 0.8% premarket as investors reacted to the possible truce. The framework would remove President Trump's threatened additional 100% tariffs and roll back China's threats to restrict rare-earth sales. Potential outcomes include finalizing a TikTok U.S. sale to Western investors and resumed soybean purchases. Export controls on advanced AI semiconductors and semiconductor manufacturing equipment would remain, limiting China’s access to cutting-edge chips and harming firms exposed to that market. Carter's warns tariffs will add about $250 million in annual costs.
Read at 24/7 Wall St.
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