China tariffs lowered, rare earths deal signed after Trump-Xi meeting
What's the story
United States President Donald Trump and Chinese President Xi Jinping have reached a one-year agreement on the supply of vital rare earths. The deal, which can be extended and renegotiated annually, was announced after their first in-person meeting since 2019 at the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea. "All the rare earths has been settled, and that's for the world," Trump said aboard Air Force One.
Meeting details
Fentanyl-related tariffs reduced
Trump also announced a reduction in fentanyl-related tariffs on China from 20% to 10%, effective immediately. This lowers China's overall tariff burden from 57% to 47%. He praised Xi as a "tremendous leader" and said they had "come to a conclusion on many very important points," though he did not announce a trade deal. Asked by a reporter on how soon he thinks a deal may come, Trump responded, "I think pretty soon...we have not too many major stumbling blocks."
Trade discussions
China to resume soybean purchases
The US president also announced that he would visit China in April, with Xi expected to visit the US afterward. Furthermore, he said China, which had recently resumed purchases of US soybeans following a months-long boycott, will buy "large, tremendous amounts of soybeans and other farm products." He also stated that China will impose "no roadblocks at all" on its rare-earth minerals and that it would postpone implementing export controls for a year.
Taiwan
Taiwan not discussed
Taiwan was not one of the topics not discussed during his meeting with Xi, Trump stated. Earlier, both leaders dodged a question on the self-governing democracy, amid concerns in Taipei that Trump may be inclined to make concessions to Xi, who has pledged to "reunify" Taiwan with the mainland. Trump described his meeting with Xi as "amazing," giving it a 12 on a scale of 0-10.
Meeting
Meeting comes after months of tension
Thursday's summit in South Korea came after months of renewed tensions that have hampered trade between the two countries. While Trump increased tariffs on China, reaching as high as 145 percent, and tightened export controls on high-tech imports, Beijing retaliated with its own brutal pressure campaign. This includes cutting purchases of American agricultural goods, which dropped by more than 50% in the first seven months of 2025. Beijing also imposed additional export controls for rare earth minerals.