BUSAN, South Korea, Oct 30 – U.S. President Donald Trump announced that Washington and Beijing reached an agreement to ease trade tensions, with the U.S. lowering tariffs on Chinese goods in exchange for significant Chinese concessions on fentanyl control, agricultural purchases, and rare earth exports. The talks, held in the South Korean port city of Busan, marked the first in-person meeting between Trump and President Xi Jinping since 2019 and wrapped up Trump’s fast-paced diplomatic tour across Asia.
Calling the session “an amazing meeting,” Trump said he rated the outcome “12 out of 10,” highlighting what he described as a major step toward improving U.S.-China relations. Tariffs on Chinese imports will be reduced to 47% from 57%, including a sharp cut in penalties linked to fentanyl-related trade. In return, Xi pledged that China would take serious measures to halt the flow of the synthetic opioid, which has been blamed for thousands of overdose deaths in the United States.
Tariffs Trimmed and Rare Earths Reprieve
Trump confirmed that part of the new deal includes a one-year suspension of China’s latest export restrictions on rare earth minerals. These materials are critical for producing electric vehicles, fighter jets, and high-tech weaponry, and have long been used as leverage by Beijing in trade disputes. The pause on export controls will offer relief to U.S. manufacturers dependent on these elements for defense and energy technologies.
China’s Ministry of Commerce released a statement confirming that the suspension would remain in effect for twelve months while both sides continued discussions on broader economic cooperation. The ministry also noted that progress had been made toward expanding agricultural trade, with China agreeing to resume purchases of U.S. soybeans and other key crops.
Another sensitive issue was addressed as well: both governments agreed to continue dialogue over the ownership of Tiktok. Trump reiterated his administration’s intent to bring the platform under U.S-controlled ownership, a matter that remains a focal point of digital and data security talks.
Cautious Market Reaction
Despite Trump’s enthusiasm, global markets responded with restraint. Stock indexes in both China and the United States showed limited movement, with China’s Shanghai Composite slipping slightly after recent highs and U.S. soybean futures softening. Analysts suggested that while the meeting signaled a thaw in tensions, investors were wary of overestimating its long-term impact.
Besa Deda, a chief economist at an Australian advisory firm, observed that markets were “cautiously optimistic” but waiting for tangible policy changes before showing stronger confidence. Some political figures back home were less charitable. U.S. Senate Democratic Leader Chuck Schumer criticized Trump’s remarks, claiming that he had “folded on China” and given away leverage too easily.
Nevertheless, Trump’s Asia tour yielded several trade developments. Before meeting Xi, he finalized negotiations with South Korean President Lee Jae Myung on a new tariff framework. Agreements were also reached with Japan and members of Southeast Asia to boost regional trade cooperation, signaling Washington’s renewed economic engagement across the Pacific.
Fragile Truce and Ongoing Challenges
Trump and Xi met for nearly two hours at a South Korean air base, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum. The atmosphere was noticeably cordial, with Xi noting that occasional friction between the two powers was “normal.” He emphasized that China’s development goals were not in conflict with Trump’s “Make America Great Again” agenda, suggesting space for pragmatic coexistence.
Both leaders also agreed to pause recently imposed port fees targeting global shipping routes, a move expected to ease tensions in the maritime trade and logistics sector. Trump hinted at a forthcoming energy deal, mentioning a potential $44 billion liquefied natural gas project in Alaska that could expand U.S. energy exports to China. He added that he plans to visit Beijing in April before hosting Xi in the United States later next year.
Chinese state media framed the summit as a sign of Xi’s steady leadership, quoting him as saying that China “has the confidence and capability to navigate all kinds of risks and challenges.” However, analysts cautioned that while the talks revived diplomatic contact, they left many of the underlying disputes unresolved.
Trump confirmed that the discussion did not touch on Nvidia’s latest Blackwell chip, a key topic in the ongoing technology rivalry. This omission was viewed as a setback for the semiconductor giant, which has struggled to maintain access to China’s $50 billion artificial intelligence market. Nvidia’s CEO Jensen Huang, speaking during a separate visit to South Korea, expressed confidence that the leaders’ talks would ultimately protect their nations’ respective interests.
Notably, the delicate issue of Taiwan was left off the agenda. Trump said there were no discussions about the island, though Taiwan’s top trade representative later confirmed meeting a senior U.S. official privately during the APEC summit.
In a striking moment just before his meeting with Xi, Trump ordered the U.S. military to resume nuclear weapons testing after more than three decades of dormancy, citing growing stockpiles in Russia and China. Beijing’s foreign ministry quickly responded, expressing hope that Washington would continue to honor the long-standing moratorium on nuclear tests.