Trump cuts China tariff after Xi signals tougher fentanyl enforcement, rare-earth pause
President Donald Trump, left, and Chinese President Xi Jinping, right, shake hands before their meeting at Gimhae International Airport in Busan, South Korea, Thursday, Oct. 30, 2025. (AP Photo/Mark Schiefelbein)
Posted For: Rotorblade
President Donald Trump announced Thursday that the United States will cut tariffs on Chinese imports following a highly anticipated meeting with Chinese President Xi Jinping in Busan, South Korea. The talks produced new agreements on fentanyl enforcement, agricultural trade, and a pause on Chinese limits to rare-earth exports.
The meeting marked the final stop on President Trump’s Asia tour, which also included visits to Malaysia and Japan, and was aimed at cooling economic tensions between Washington and Beijing. Since returning to the White House in January, President Trump has imposed sweeping tariffs on Chinese goods, a move that led Beijing to tighten control over rare earth element exports.
Both leaders signaled a mutual desire to ease friction and stabilize global markets. In the lead-up to the summit, aides from both sides said discussions would center on tariffs, high-tech exports, and supply chain competition — long-standing sticking points between the two powers.
After nearly two hours of talks, President Trump said he and Xi reached “an outstanding group of decisions” on key economic and security matters. Among them: an agreement for China to begin immediate purchases of U.S. soybeans and other farm goods, and a renewed pledge from Beijing to block the flow of fentanyl into the United States.
“I believe he’s going to work very hard to stop the death that’s coming in,” President Trump said, referring to Xi’s commitment to fentanyl enforcement.
Trump also announced that the U.S. will reduce tariffs on Chinese imports by ten percentage points, from roughly 20% to 10%, though officials later clarified the adjusted rates would fall closer to 45–47%, depending on the product category.
On rare earth exports, Trump said China agreed to pause its planned export restrictions for one year, with both sides set to revisit the arrangement next year and potentially extend it further.
The two leaders also discussed technology and semiconductor trade. Trump said China plans to expand purchases from U.S. chipmaker Nvidia, though the latest generation of advanced processors was not part of the talks. He described the outcome as a one-year framework agreement “to be renewed annually.”
“We have a deal,” Trump said. “Every year we’ll renegotiate, but I think it’ll go on for a long time.”
Plans for reciprocal state visits were also announced — President Trump will travel to China in April, and President Xi is expected to visit the United States later this year.
Their meeting, which lasted just over an hour and forty minutes, concluded with a brief photo session. As cameras flashed, the two leaders exchanged quiet words before shaking hands and parting ways.
“It’s an honor to be with a friend of mine,” Trump told reporters, noting that while differences remain, “we’ve already agreed to a lot of things.” Xi, in turn, said it “feels very warm seeing you again because it’s been many years,” adding that while friction between major powers is natural, both countries “can still find ways to thrive side by side.”
Earlier aboard Air Force One en route to South Korea, President Trump had signaled optimism that tariff reductions were likely due to China’s cooperation on fentanyl. “I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” he said. “The relationship with China is very good.”
In a Truth Social post after the meeting, the president called the talks “truly great,” highlighting China’s commitments to purchase large amounts of U.S. soybeans, sorghum, and other farm products, as well as to continue the open flow of rare earths and critical minerals.
“Very significantly, China has strongly stated that they will work diligently with us to stop the flow of Fentanyl into our Country,” Trump wrote. “They will help us end the Fentanyl Crisis.”
He also said discussions are underway for China to purchase American energy, including oil and gas from Alaska. “A very large-scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska,” Trump said, noting that U.S. energy officials will soon meet with Chinese counterparts to explore the deal.
“The agreements reached today will deliver prosperity and security to millions of Americans,” the president concluded.
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