In a major development for global trade, US President Donald Trump announced on Thursday a reduction in tariffs on Chinese goods from 57% to 47%, following high-level discussions with Chinese President Xi Jinping in South Korea.
Trump also announced an immediate reduction in tariffs on fentanyl imports from China, lowering the rate from 20% to 10%. This decision followed China's commitment to crack down on fentanyl exports, marking a significant breakthrough in negotiations between the United States and China
The two leaders met in Busan on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, where they held talks aimed at easing long-standing economic tensions between Washington and Beijing. Trump described the discussions as a “great success,” adding that he plans to visit China in April 2026 to build on the progress achieved during the summit.
The meeting came as tensions grew between the world’s two biggest economies after months of trade disputes. Earlier this month, China tightened export rules, and the U.S. warned of possible limits on software exports, adding to the strain.
Trump also declared that the trade dispute between the United States and China has been settled, signalling a potential thaw in relations after years of friction over tariffs, technology access, and supply chain security.
When asked about Taiwan, the US President clarified that the issue “never came up” during the meeting, emphasizing that discussions remained focused on trade and cooperation.
Trump told reporters that the issue of rare earths had been fully resolved, calling it “a deal for the world,” and noted that the terms would be reviewed and renegotiated each year.
Trump also revealed that he and President Xi Jinping had agreed to cooperate on efforts to resolve the war in Ukraine. He further added that Xi had expressed willingness to assist the United States in pursuing peace efforts related to the conflict.
