US President Donald Trump announced a significant reduction in tariffs on Chinese imports following a high-level summit with Chinese President Xi Jinping in Busan, South Korea.
The agreement includes commitments from China to resume substantial US soybean purchases, maintain the flow of rare earth element exports, and intensify efforts to combat the illicit trade of fentanyl, a major public health concern
Trump confirmed that US tariffs on Chinese goods would drop to 47%, down from 57%, marking one of the largest tariff cuts since the beginning of the US-China trade war. The deal, reached after intensive face-to-face discussions at the Asia-Pacific Economic Cooperation (APEC) summit, is expected to stabilise global markets and foster renewed economic cooperation between the world’s two largest economies.
JUST IN: 🇺🇸🇨🇳 President Trump officially meets with Chinese President Xi Jinping to discuss trade deal. pic.twitter.com/lIB0O68Wo7
— Watcher.Guru (@WatcherGuru) October 30, 2025Trump and Xi: Key Terms of the Agreement
- Tariff Truce Extension: Beyond November 10 expiration.
- Soybean Purchases: China to buy US soybeans after favouring Brazil/Argentina.
- Rare Earths: One-year delay in licensing; supply to flow worldwide.
- Other Elements: Fentanyl curbs, US port fees, TikTok ownership.
Trump told reporters aboard Air Force One: “It was an amazing meeting. We have a good deal—both happy.”
Global stocks fluctuated post-announcement. China’s Shanghai Composite fell from a 10-year high; US soybean futures weakened.
‘Three to four hours…’: Trump’s hot mic moment reveals plan for Xi meet amid US-China trade tensions 🎙️🇺🇸🇨🇳🤝https://t.co/70qWBNVrwu #Trump #XiJinping #USTrade pic.twitter.com/uPgR18VyQ4
— Economic Times (@EconomicTimes) October 30, 2025Read: Trump Orders Resumption of US Nuclear Testing on Equal Basis with Rivals
The deal ends tensions stemming from May’s breakdown of the Geneva truce, including China’s October expansion of its rare-earth production (12 elements restricted). It stabilises supply chains, with rare earths vital for tech and defence. The agreement eases trade-war risks, benefiting farmers and the tech sector.
Trump and Xi Meeting Key Takeaways
- President Trump announced a significant reduction in tariffs on Chinese imports following a summit with President Xi Jinping in Busan.
- The tariffs on Chinese goods will drop to 47% from 57%, marking a major cut in the US-China trade war.
- China is committed to resuming US soybean purchases and maintaining rare earth element exports, along with actions against fentanyl trade.
- The deal aims to stabilise global markets and improve economic cooperation, benefiting farmers and the tech sector.
- Global stocks fluctuated after the announcement, with impacts noted in US soybean futures and China’s stock market.
