President Donald Trump and Chinese President Xi Jinping reached a preliminary trade truce in Seoul on October 30, 2025, pausing a dispute over rare earth elements (REEs) that had heightened U.S.-China tensions. The agreement halts China's export controls on REEs for one year, offering temporary stability to global industries reliant on these materials, including electronics, electric vehicles, defence equipment, and furniture hardware.
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Rare earths such as neodymium, dysprosium, and terbium are critical for magnets used in drawer catches, modular joints, recliners, and smart furniture components. With China controlling roughly 80% of the global supply, earlier restrictions threatened higher costs, longer lead times, and supply disruptions. The truce reduces the immediate risk of price spikes and improves supply chain reliability for magnet-dependent products.
Trump indicated the deal may be "very routinely extended" and emphasised annual renegotiations. The U.S. also postponed a rule that would have blacklisted certain Chinese subsidiaries, and both nations agreed to suspend port fees for one year. Trump plans a visit to China in April 2026, while Xi is expected in the U.S. later in the year.
While the truce does not fundamentally alter the market, it provides temporary relief for furniture manufacturers incorporating tech-integrated, motion, or modular designs. Industry experts advise monitoring hardware origins and diversifying suppliers, noting that the agreement ensures "recliners glide, drawers slide, and margins are protected" amid ongoing global supply chain pressures.
Source: www.furnituretoday.com
