Trump cuts tariffs on China after “successful” meeting with Xi in South Korea

U.S. President Donald Trump hailed his face-to-face meeting with Chinese President Xi Jinping on Thursday as a “roaring success,” announcing that the U.S. will cut tariffs on Chinese imports and that Beijing has agreed to ease export restrictions on rare earth minerals and resume purchases of American soybeans.

Speaking to reporters aboard Air Force One, Trump said the U.S. will reduce the tariffs imposed earlier this year on China for its role in the production of fentanyl — from 20 per cent to 10 per cent — lowering the overall tariff rate on Chinese goods from 57 per cent to 47 per cent.
“On a scale from 0 to 10, I’d say the meeting was a 12,” Trump said.

The two leaders met for roughly 100 minutes in Busan, a port city near the venue of this week’s Asia-Pacific Economic Cooperation (APEC) summit. The talks, which took place in a modest building on a military base, marked a rare moment of cooperation between the world’s two largest economies after months of escalating trade tension.

Trump announced that he plans to visit China in April, with Xi expected to make a reciprocal trip to the U.S. later in 2025. He also said discussions included potential U.S. exports of advanced computer chips, noting that Nvidia will be in talks with Chinese officials. Despite Trump’s optimism, analysts cautioned that deep strategic and economic rivalries remain unresolved. The two nations continue to vie for dominance in manufacturing, artificial intelligence, and global influence, particularly amid disputes over Russia’s war in Ukraine and Taiwan’s security.

“Both sides are managing volatility, calibrating just enough cooperation to avert crisis while the deeper rivalry endures,” said Craig Singleton of the Foundation for Defense of Democracies.
Throughout 2025, Trump’s tariff policy has swung sharply — from threats of 145 per cent tariffs in April to a 100 per cent import tax warning earlier this month over China’s rare earth export limits. Thursday’s move to ease tariffs represents a notable de-escalation.

China, for its part, has wielded control over rare earth minerals — critical to the production of electronics, electric vehicles, and defense technologies — as a key bargaining chip. In the lead-up to the Busan meeting, Beijing signaled it might loosen those restrictions in exchange for tariff relief.

Investors responded positively to signs of a thaw, with U.S. markets climbing on optimism that a broader trade framework could emerge. Trump described the ongoing negotiations as being close to completion, saying, “We could sign a trade deal pretty soon.” Xi, according to China’s Xinhua News Agency, acknowledged ongoing “frictions” but stressed the importance of cooperation between the two powers. “It is normal for the world’s two leading economies to have differences,” Xi said, through a translator.
While the tone of the meeting was cordial, both sides remain cautious. Trump’s unpredictable tariff strategies and Xi’s continued control over critical exports underscore how easily the new detente could unravel. Xi is expected to remain in South Korea for additional meetings with regional leaders at the APEC summit beginning Friday, while Trump will return to Washington.

As former U.S. diplomat Jay Truesdale observed, “Xi sees an opportunity to position China as a reliable partner and strengthen relations with countries frustrated by Washington’s trade tactics.”
For now, both leaders appear to have achieved what they needed most — a temporary cooling of tensions without giving up leverage in an ongoing economic power struggle.