Busan/ South Korea: US President Donald Trump and Chinese President Xi Jinping agreed to reduce some tariffs and deepen cooperation on key trade issues during talks in Busan, their first face-to-face meeting in five years.
Trump said he would cut certain tariffs on Chinese imports in exchange for Beijing stepping up action against illegal fentanyl production, resuming large-scale US soybean purchases, and keeping rare earth exports flowing to global markets.
The meeting, held on the sidelines of the APEC summit, capped Trump’s trip across Asia, where he also announced trade progress with South Korea, Japan, and Southeast Asian countries.
Speaking aboard Air Force One after leaving Busan, Trump said tariffs on Chinese goods would be lowered to 47 percent from 57 percent. Duties on chemicals linked to fentanyl production will drop to 10 percent from 20 percent.
He said he believed China would act ‘very hard’ to curb the deadly drug supply. “I thought it was an amazing meeting,” Trump told reporters, rating the talks “12 out of 10.”
Fentanyl is the leading cause of overdose deaths in the United States.
President Donald J. Trump meets with Chinese President Xi Jinping in South Korea.
“I think we’re going to have a fantastic relationship for a long period of time, and it is an honor to have you with us.” pic.twitter.com/ISpVBzkvN3
— The White House (@WhiteHouse) October 30, 2025
Cautious market reaction
Global markets moved cautiously as details emerged. Asian indexes swung in mixed trade, the Shanghai Composite slipped from a 10-year high, and US soybean futures eased. Analysts said investors had already priced in much of the deal and were expecting deeper tariff relief. Only India and Brazil remain subject to higher US tariff rates among major trading partners.
Expectations had been high, with world markets rising ahead of the summit on hopes of progress in a long-running trade rift that has disrupted supply chains and global business confidence.
Beijing to maintain rare earth supplies.
The leaders discussed rare earth minerals critical for electronics and defence industries, after China tightened export controls earlier this month. Trump said Beijing would not move forward with those restrictions.
China dominates global rare earth production. Trump also signed pacts with Japan and Southeast Asian partners aimed at diversifying supply, though any major shift away from Chinese control will take time.
Trump said China would begin buying tremendous amounts of US soybeans and farm goods immediately. China recently made its first US soybean purchase in months, according to trade sources.
.@POTUS shakes hands with China’s President Xi after their historic meeting in South Korea. pic.twitter.com/O3DOxWIJ7d
— Rapid Response 47 (@RapidResponse47) October 30, 2025
Xi: Friction is normal
At the start of the talks, Xi said it was normal for both countries to have differences, but he stressed a willingness to continue working with Washington. Officials from both sides earlier this week reached a framework that avoided 100 percent tariffs on Chinese goods and paused Chinese export curbs on rare earths.
Beijing had also pushed for easing US technology export rules and a rollback of new port fees on Chinese vessels. Trump did not comment on those requests. A previous round of tariff and rare-earth agreements expires Nov. 10.
Trump clarified that the leaders did not discuss US export rules on Nvidia’s advanced AI chips, reversing earlier remarks suggesting possible relief for the company.
