Trump cuts China tariffs to 47% after 'amazing' Xi meeting
U.S. President Trump agrees to cut China tariffs to 47% in exchange for trade concessions, including resumption of U.S. soybean purchases and rare earth exports
BUSAN, South Korea, Oct 30 (Reuters) – U.S. President Donald Trump announced Thursday that he had agreed to reduce tariffs on Chinese imports to 47% from 57%, following a face-to-face meeting with Chinese President Xi Jinping in Busan, South Korea. The meeting, their first since 2019, was held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit and marked the culmination of Trump’s whirlwind Asia trip.
Trump described the talks as “amazing,” telling reporters aboard Air Force One that China had agreed to resume purchasing U.S. soybeans, continue exporting rare earth materials, and intensify efforts to combat the illicit trade of fentanyl. The reduction of tariffs is part of a broader framework aimed at avoiding 100% U.S. tariffs on Chinese goods and deferring China’s export curbs on rare earths—a critical sector that China dominates.
Trump’s remarks came as global stock markets reacted with volatility. While major Asian indexes and European futures swung between gains and losses, China’s Shanghai Composite Index slipped from a 10-year high. U.S. soybean futures also weakened, reflecting the mixed market reaction to the trade deal.
The nearly two-hour meeting between the two leaders marked a significant moment in U.S.-China relations, which have been marked by economic and geopolitical tensions. The discussions, which took place in a cordial atmosphere, included a red carpet send-off for Xi at the Busan airport after the meeting. Trump, speaking to the press beforehand, expressed confidence that the talks would be successful, acknowledging Xi as a tough negotiator. In response, Xi stated that it was normal for the two largest economies in the world to have occasional disagreements, but he expressed optimism about continuing to work with Trump to establish a solid foundation for U.S.-China relations.
The meeting’s outcomes, however, come amid concerns that despite the trade truce, the competition between the two nations—both economic and geopolitical—remains intense. As both countries increasingly take a hardline stance, questions linger about how long the detente will last.
Trump’s Asia trip also included significant breakthroughs in trade negotiations with South Korea, Japan, and Southeast Asian nations, as the U.S. looks to strengthen its economic ties across the region. The trade discussions with China, however, have captured the most attention, with the world closely watching for signs of lasting stability between the two economic giants.
