Trump-Xi trade truce: Potential winners and losers

Key points:

• Markets cheered the Trump–Xi trade truce, which if signed will halt new tariffs and delays China’s rare-earth export controls, offering near-term relief to global supply chains.
• Big names like Apple and Tesla could see temporary sentiment support, while rare-earth miners such as MP Materials and Lynas face renewed pressure.
• This is a tactical pause, not a reset. Core tensions over technology, subsidies, and strategic dominance remain unresolved, keeping policy risk elevated.

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Global markets opened the week on a stronger footing after Washington and Beijing reached a framework trade deal, now awaiting formal sign-off from Presidents Donald Trump and Xi Jinping.

The announcement brought a welcome reprieve after months of escalating rhetoric and tariff threats. Equities rallied across regions, led by cyclical and trade-sensitive names, while commodity currencies strengthened and safe-haven assets such as gold saw modest outflows.

The formal meeting between the two leaders is scheduled for Thursday, 30 October 2025, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in Busan/Gyeongju, South Korea. That session is expected to confirm or refine the framework agreement that negotiators reached over the weekend.

While the accord stops short of a full reset in U.S.–China relations, it marks a tactical de-escalation that may calm inflation concerns and stabilise sentiment heading into year-end.

Inside the deal

The agreement covers a limited set of measures designed to stabilise trade and restore dialogue:

• Tariffs paused: The U.S. will hold off on its next round of tariff increases on Chinese imports.
• Rare-earth controls delayed: China will suspend planned export restrictions for a year while reviewing policy, easing supply concerns for critical technologies.
• Agricultural trade restored: Chinese importers are expected to resume soybean purchases from the U.S., providing relief to farmers and agribusiness exporters.
• Cooperation extended: Both sides signalled intent to collaborate on fentanyl regulation and shipping levies — modest but symbolically important gestures of goodwill.

For investors, this represents a temporary easing of trade uncertainty, though long-term structural rivalry remains firmly in place.

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Stocks and sectors in focus

Potential beneficiaries

Technology supply chains: Apple, Nvidia, Intel, Qualcomm
Reduced supply-chain risk supports U.S. tech majors with significant China exposure. Apple and Nvidia could benefit from smoother component flows and less headline volatility, while Qualcomm and Intel may see more predictable demand for chips and networking hardware.

Consumer and retail: Walmart, Target, Home Depot
Retailers that import consumer goods stand to gain from lower import costs and stable supply chains through the holiday season. Improved sentiment could also lift discretionary spending if inflation expectations ease.

Electric vehicles: Tesla
Tesla’s Shanghai Gigafactory remains critical to its global production network. Easing trade friction supports both output continuity and potential demand recovery in China’s EV market — though competition from local automakers stays intense.

Aerospace: Boeing and global manufacturers
The outlines of the deal appear to include that China will place an order for planes with Boeing, underscoring the political and symbolic importance of U.S. manufacturing in the broader agreement. Still, the sector’s main challenges remain production quality, regulatory oversight, and meeting delivery targets after several years of scrutiny.

Agri and machinery: Archer-Daniels-Midland, Bunge, and Deere
The resumption of U.S. soybean exports to China offers a boost to agribusiness and farm-equipment demand, although follow-through will depend on Chinese restocking behaviour.

Shipping and logistics: Maersk, FedEx, and COSCO Shipping
Any rollback of shipping levies could revive global trade volumes and improve freight efficiency. Logistics operators may benefit from more predictable cross-border flows.

China tech: Alibaba, Baidu, and Tencent
Chinese tech shares may enjoy a sentiment rebound as investors reassess geopolitical risk premiums. However, regulatory and growth challenges remain, limiting the scope for sustained re-rating.

Sectors that could face pressure

Rare earth miners: MP Materials, Lynas, Lithium Americas
The delay in China’s export restrictions may dampen prices of key minerals used in semiconductors and EV batteries. Earlier gains driven by scarcity fears could unwind.

U.S. reshoring and protection-beneficiary plays
Industrials and niche manufacturers that gained from tariff-driven supply-chain diversification may see relative underperformance as investors rotate back toward globally integrated firms.

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But let’s not get carried away

This is not a reset of U.S.–China relations. The key fault lines — technology dominance, export controls, and industrial subsidies — remain unresolved.

The two nations are still competing to define the next era of technological and economic leadership, from semiconductors to artificial intelligence to advanced manufacturing and green infrastructure. The trade truce simply buys time, not peace.

Policy risk therefore stays elevated even as markets celebrate the pause. For investors, the key is to differentiate between tactical relief and structural realignment — and to build portfolios resilient to both.

 

Investment view

The Trump–Xi framework underscores a shift from confrontation to calibration. Near-term sentiment may stay positive, but structural divergence between the U.S. and China will continue to shape global capital flows, supply chains, and technology ecosystems.

For investors, this means maintaining balanced exposure across regions and sectors, favouring companies with strong pricing power, diversified operations, and strategic alignment with long-term industrial policy trends.

Bottom line

The Trump–Xi trade truce is a welcome break in the storm, but not the end of it. Markets may continue to rally on relief, but sustainable gains will depend on whether both sides can translate this framework into lasting cooperation.

For now, investors should stay positioned for opportunity, but remain prepared for volatility. The geopolitical cycle, much like the market cycle, is far from over.

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