US President Donald Trump on Thursday said tariffs on Chinese goods would be reduced to 47% from 57% after what he described as an “amazing” meeting with Chinese President Xi Jinping in South Korea.
Trump said “a lot of decisions were made” during the talks, which he said ranged from trade and technology to fentanyl and rare earths.
The announcement marks the most significant easing of trade tensions between Washington and Beijing since Trump’s return to office.
The US president said China would “immediately” begin large-scale purchases of American soybeans, adding that “all the rare earth issue has been settled” and that Xi had agreed to “work very hard to stop fentanyl.”
He added that Washington would cut fentanyl-related tariffs on China to 10 percent.
“We’re going to be providing conclusions on very important things,” Trump said, without elaborating on the next steps. Notably, he added that the meeting with China's leader Xi Jinping yielded an extendable one-year deal on the supply of crucial rare earths.
"All the rare earths has been settled, and that's for the world," Trump told reporters aboard Air Force One, adding that the deal was for a year and would be re-negotiated annually.
The two leaders also discussed cooperation on Ukraine, with Trump saying the U.S. and China would “work together… to get something done.”
Talks on semiconductors were also held, he said, noting that Beijing would be “talking to Nvidia and others about taking chips,” while clarifying that “we’re not talking about Blackwell chips.”
Not everything was on the table, though, Trump said, adding that the issue of Taiwan “never came up.”
Trump said he would visit China in April, with Xi expected to travel to the United States “sometime after that.”
Moreover, he said the meetings had removed several “roadblocks” and hinted at “major outcomes” to be unveiled soon.
'US-China reached consensus': Xi after Trump talks
According to Chinese state media, Xi urged both sides to “look at the long-term interest of cooperation,” warning that the two countries “should not fall into a vicious cycle of revenge.”
He said China “never wanted to challenge or replace anyone,” adding that “economic and trade teams of China and the U.S. held in-depth talks and reached consensus on solutions to problems.”
Xi called for Washington and Beijing to “continue to shorten the list of problems and lengthen the list of cooperation,” and said the two nations “should focus on the long-term benefits brought by cooperation rather than falling into a vicious cycle of retaliation.”
China’s official news agency Xinhua reported that Trump and Xi agreed to “strengthen cooperation in energy and trade.” Xi added that “both sides have good prospects for countering telecom fraud and money laundering,” signalling a willingness to expand collaboration beyond the economic sphere.
From tariff fire to fragile truce
On February 1, 2025, Trump imposed a 10% tariff on all Chinese imports, citing a “national emergency” tied to fentanyl trafficking. Beijing retaliated with duties on American energy and agricultural goods, along with investigations targeting US companies.
By April, tit-for-tat hikes had pushed tariffs above 100% on both sides, and China added export restrictions on rare-earth materials vital for semiconductors and electric vehicles.
A meeting in Geneva in May produced a temporary 90-day truce, followed by further negotiations in London and Stockholm during the summer, which extended the respite but achieved little in reversing trade barriers.
The confrontation reignited in early October when Trump threatened 100% tariffs on Chinese goods unless Beijing eased its rare-earth curbs.
China responded by tightening licensing requirements for exports of magnets used in advanced manufacturing, escalating fears of a prolonged standoff.
Fentanyl trade link behind deal framework
Two days before the scheduled meeting, the Wall Street Journal had reported that Trump and Xi were expected to discuss a framework under which the United States could reduce tariffs on Chinese goods in exchange for Beijing’s commitment to curb exports of precursor chemicals used to manufactur ..
Citing people familiar with the talks, the WSJ report said the US could consider halving the 20% levies it had imposed in retaliation for those exports. Details of the understanding, the report added, would be finalised in follow-up negotiations depending on the outcome of the leaders’ discussions.
The White House declined to comment on the report at the time. Trump’s Thursday meeting with Xi was planned as part of his Asia tour that included stops in Cambodia and Thailand.
On October 26, the Associated Press reported that both sides had signalled optimism ahead of the APEC meeting, with China’s top trade negotiator Li Chenggang saying they had reached a “preliminary consensus.” Meanwhile, US Treasury Secretary Scott Bessent told CBS’ Face the Nation there was now “a very successful framework” for the leaders to finalise.
Bessent said the threat of new tariffs was “effectively off the table,” while Trump told reporters the Chinese “want to make a deal and we want to make a deal.” He suggested future visits to Beijing and reciprocal trips by Xi to Washington or Mar-a-Lago.
Reuters reported that Bessent and US Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng and Li Chenggang in Kuala Lumpur for their fifth round of in-person discussions since May. Bessent said he anticipated the tr ..
Beijing cautious, Washington confident
Chinese officials have remained measured in their language. Li Chenggang told reporters the two sides had “experienced very intense consultations” and would next proceed through domestic approval processes. “The US position has been tough, whereas China has been firm in defending its own interests and rights,” he said through an interpreter.
Trump, meanwhile, has struck a triumphant tone, previously calling the agreement “a big step toward fair trade” and using the occasion to reaffirm his reputation as a dealmaker on the global stage.
At the ASEAN Summit in Kuala Lumpur before heading to South Korea, Trump had also announced economic frameworks with Cambodia, Thailand, and Malaysia — several focused on critical minerals — part of what the AP described as an effort to expand Washington’s trade footprint in Asia as it reduces
Source Name : Economic Times