Trump, Xi Strike Trade Truce in South Korea: U.S. to Cut Tariffs, China to Resume Farm Buys and Crack Down on Fentanyl
Key Facts
- Trump and Xi agree to reduce U.S. tariffs on Chinese goods by 10 percentage points.
- China to resume U.S. soybean imports, pause rare-earth export controls, and curb fentanyl precursors.
- Framework deal seen as “a truce” in U.S.–China trade war
- renewable annually.
- Trump and Xi to hold reciprocal visits in 2026 amid broader Indo-Pacific diplomacy.
by Emmitt Barry, with reporting from Washington D.C. Bureau Staff
GYEONGJU, SOUTH KOREA (Worthy News) – U.S. President Donald Trump and Chinese Communist Party leader Xi Jinping met face-to-face Thursday for the first time in six years, announcing a breakthrough in trade relations that includes tariff reductions, resumed agricultural purchases, and new commitments to curb fentanyl exports to the United States.
Following a 90-minute bilateral meeting at Gimhae Air Base in Busan, Trump told reporters aboard Air Force One that the talks were “an amazing meeting” between “two very large, powerful countries.”
Under the new framework agreement, the United States will reduce tariffs on Chinese imports by 10 percentage points — lowering the overall rate to about 47 percent — while Beijing pledged to resume buying American soybeans, relax export restrictions on rare-earth minerals, and step up enforcement against the production and shipment of fentanyl precursors.
“I believe he’s going to work very hard to stop the death that’s coming in,” Trump said of Xi, referring to the opioid crisis. “President Xi was very strong in saying he’s going to enforce those laws internally–and of course, we’ll watch that.”
The meeting, which took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, marked the first Trump-Xi encounter since the 2019 G20 in Osaka. It followed days of negotiations by trade teams from both nations, who had reached a tentative framework to ease tensions that escalated earlier this year when both sides imposed tariffs of 100% or more on each other’s goods.
Rare Earths, Farmers, and Fentanyl
Trump said China agreed to pause its new export controls on rare earth elements for 1 year — materials crucial to the global manufacturing of electronics, electric vehicles, and defense systems.
“The roadblock to importing rare earths is gone,” Trump said, adding that the U.S. will continue diversifying its supply chains through new trade pacts with Japan, Malaysia, and Thailand.
On agriculture, Beijing committed to restart purchases of U.S. soybeans and other farm goods. American producers have suffered steep losses since China halted imports amid the tariff standoff, turning instead to Brazil and Argentina.
U.S. Agriculture Secretary Brooke Rollins hailed China’s purchase of several million bushels this week as “a great start.” At the same time, Trump emphasized his goal that China “quadruple” its soybean imports in the coming months.
‘A Deal on Everything’
Trump framed the agreement as more than a traditional trade deal, describing it as “a deal on everything,” encompassing fentanyl enforcement, technology, and future cooperation on Indo-Pacific security.
The U.S. also agreed to postpone Section 301 port fees on Chinese-built vessels, a move paired with a new $150 billion investment from South Korea in American shipbuilding.
The two leaders plan reciprocal visits in 2026, with Trump scheduled to travel to Beijing in April and Xi expected to visit Washington later in the year.
Technology and Trust
Trump confirmed that he raised the issue of U.S. semiconductor exports, particularly Nvidia’s advanced AI chips, which have been a flashpoint in the trade war. Nvidia’s market value soared past $5 trillion this week following Trump’s remarks that he may discuss the company’s “super-duper” Blackwell processor with Xi.
While the two sides discussed technology broadly, neither side confirmed any agreement on advanced chip sales. Nvidia CEO Jensen Huang is expected to meet with Trump later this week.
Broader Diplomatic Goals
The leaders did not address Taiwan during the meeting, according to Trump, though he said the Russia-Ukraine war and “ways to get that war finished” were discussed.
Xi praised the meeting’s tone, telling Trump through an interpreter, “Our two countries are fully able to help each other succeed and prosper together.”
Trump echoed the sentiment: “It was a very friendly meeting. It was a good meeting for two very large, powerful countries–and that’s the way we should get along.”
Analysts called the outcome a tactical truce rather than a final settlement, noting that the agreement is structured as a one-year, renewable framework, leaving major issues such as technology transfers, human rights, and military competition unresolved.
Still, for global markets and weary exporters on both sides, Thursday’s handshake marked the most significant thaw in U.S.-China relations in years.
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