The U.S. and China have agreed on a tentative framework to revive trade negotiations, returning discussions to the post-Geneva status quo. As part of the deal, China will “immediately” begin issuing rare earth export licenses to U.S. firms—though these will be limited to six-month durations, according to The Wall Street Journal (gated).Despite this progress, the truce remains tenuous. Tariff rates remain unchanged, with the U.S. having imposed 30% duties on Chinese goods this year, while China holds at 10%, in addition to prior measures. Both sides appear to be keeping leverage intact as they await presidential sign-off and assess the pace of implementation.Separately, a U.S. appeals court ruled that the Trump administration’s tariffs may remain in place during an ongoing legal challenge over whether the former president had the authority to impose them under the International Emergency Economic Powers Act (IEEPA)—a temporary win for the government.Meanwhile, Treasury Secretary Scott Bessent told lawmakers it’s “highly likely” that countries negotiating in good faith with the U.S. will avoid the reactivation of country-specific tariffs on July 9. The comment suggests the deadline is more flexible than previously assumed.TACO is short for "deadline is more flexible than previously assumed" in this case. This article was written by Eamonn Sheridan at www.forexlive.com.