Trump Eases China Tariffs After Xi Vows Crackdown on Fentanyl and Rare Earth Pause
In a high-stakes diplomatic turn, U.S. President Donald Trump announced a significant reduction in tariffs on Chinese imports following a one-on-one meeting with Chinese President Xi Jinping in Busan, South Korea, on Thursday. The meeting, marking the final leg of Trump’s Asia trip, signaled a momentary thaw in the tense economic rivalry between the world’s two largest economies. Trump confirmed he would cut tariff rates from 20% to 10%, citing Xi’s commitment to intensify enforcement against fentanyl trafficking and to suspend China’s planned restrictions on rare earth exports for a year. “I believe he’s going to work very hard to stop the death that’s coming in,” Trump told reporters, referring to the deadly synthetic opioid crisis plaguing the United States.
The hour-and-forty-minute meeting also produced what Trump described as “an outstanding group of decisions,” including new Chinese purchases of U.S. soybeans and farm goods. Both leaders agreed to revisit the rare-earth arrangement annually, a move analysts see as a cautious step toward stabilizing global supply chains critical to technology and defense industries. Trump also revealed that discussions touched on semiconductor cooperation, noting that China was in talks with Nvidia about chip purchases, though next-generation processors were excluded from the deal. The U.S. president hailed the agreement as “a one-year framework deal” that could be renewed indefinitely, adding, “We have a deal. Every year we’ll renegotiate, but I think it’ll go on for a long time.”
For Xi, the summit was an opportunity to project a spirit of pragmatism amid mounting global scrutiny. “It feels very warm seeing you again,” Xi said, adding that while frictions between major powers are normal, the U.S. and China “can still find ways to thrive side by side.” The meeting concluded with a brief handshake and photo opportunity before Trump departed Busan aboard Air Force One, waving to the press. With reciprocal visits now planned — Trump to Beijing in April and Xi to Washington later this year — both leaders appear eager to reshape a relationship long defined by competition into one tentatively guided by cooperation. Whether this diplomatic détente endures beyond the headlines remains to be seen.
