US President Donald Trump announced today that the United States will reduce tariffs on Chinese goods to 47 per cent, down from 57 per cent. The move follows his face-to-face meeting with Chinese President Xi Jinping in Busan, South Korea — their first direct talks since 2019.
According to Trump, China agreed to resume large-scale US soybean purchases, maintain stable exports of rare earth minerals to the United States, and intensify efforts to curb illegal fentanyl trade. In return, Washington will roll back part of its tariff pressure.
Calling it an “amazing meeting,” Trump highlighted the significance of the agreement during remarks on Air Force One shortly after leaving Busan. The announcement capped his fast-paced Asia tour, during which he also spoke confidently about fresh trade boosts with South Korea, Japan, and key Southeast Asian partners.
Global markets reacted with uncertainty as details of the arrangement surfaced. Major Asian stock indexes and European futures fluctuated, while China’s Shanghai Composite eased off from a decade-high peak. US soybean futures also weakened following the news.
The talks, held on the sidelines of the APEC summit, lasted nearly two hours. Trump and Xi exchanged handshakes, with Trump personally walking Xi back to his vehicle before receiving a red-carpet send-off.
Though negotiators from both nations recently signaled progress toward preventing a steep escalation of tariffs and export restrictions, observers caution that economic and geopolitical tensions between Washington and Beijing remain deeply rooted. Whether this easing becomes a stepping-stone to lasting stability — or merely a temporary pause — remains uncertain.
