President Donald Trump announced a major breakthrough in US-China trade relations following an “amazing” meeting with Chinese President Xi Jinping in South Korea.
Tariffs on Chinese goods will drop from 57% to 47%, marking a significant easing of tensions.
The leaders reached an extendable one-year agreement on rare earths, a critical component for semiconductors and electric vehicles. Trump confirmed China would resume large-scale purchases of American soybeans and pledged to curb fentanyl exports. In response, the US will reduce fentanyl-related tariffs to 10%.
Trump emphasized that “a lot of decisions were made,” covering trade, technology, and Ukraine cooperation. Talks also touched on semiconductors, with China expected to engage with companies like Nvidia. However, Taiwan was notably absent from the discussions.
This deal follows months of escalating tariffs, peaking at over 100% earlier this year. A temporary truce in May led to further negotiations, culminating in this recent summit. Trump hinted at “major outcomes” ahead and announced plans to visit China in April, with Xi expected to reciprocate.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer held multiple rounds of talks with Chinese officials, laying the groundwork for the agreement. Chinese negotiators described the process as “intense,” while Trump hailed it as a “big step toward fair trade.”
The summit also included new economic frameworks with Cambodia, Thailand, and Malaysia, aimed at reducing US dependence on China and expanding its trade footprint in Asia.
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