Trump, Xi reach deal to cut tariffs and boost trade – DW – 10/30/2025

US President Donald Trump on Thursday described his meeting with his Chinese counterpart Xi Jinping as a “huge success” and said the two leaders had agreed to a deal under which the US will reduce tariffs on China from 57% to 47%.

In return, Beijing will keep China’s rare earth exports going. Trump said China would also buy “huge quantities” of American soybeans and crack down on fentanyl trafficking. This agreement will remain in force for at least one year.

The two-hour meeting on the sidelines of the APEC summit in Busan, South Korea, was the first in-person meeting between Xi and Trump since 2019.

Trump called Xi a “tremendous leader of a very powerful country” and said several issues were “finalized” at the meeting.

The US President also said that the two leaders will visit each other’s countries.

“I’ll be going to China in April and he’ll be here sometime after that, whether it’s in Florida, Palm Beach or Washington, D.C.,” Trump told reporters aboard Air Force One.

Chinese markets remained bullish on hopes of easing trade tensions.

After talks with Xi Jinping, Donald Trump said he had agreed to reduce fentanyl-related tariffs on China from 20% to 10%. He announced that the dispute between China and the United States had been “resolved”.

The US president also said his meeting with Chinese leader Xi Jinping resulted in a one-year agreement for vital rare earth supplies.

“All the rare earths have been disposed of, and it’s for the world,” Trump told reporters aboard Air Force One. He said that this agreement will be renegotiated every year.

The American agricultural sector has been hit by the US-China trade war.

Soybean producers have suffered the most losses Trade with China to decline by $3 billion (€2.6 billion) in the first half of 2025 compared to the same period in 2024,
China has traditionally been the largest customer of U.S. soybeans, which will buy about half the crop in 2024.

But Chinese retaliatory tariffs on soybeans effectively halted U.S. sales of the bean to China since May.

Brazil and Argentina have come forward to fill this gap.

Ahead of the Xi-Trump meeting, Treasury Secretary Scott Besant, who led trade talks with Chinese officials last week, directly addressed soybean farmers’ concerns.

“When the deal with China is announced publicly … our soybean farmers will feel very good about what has been in place for several years, both for this season and for seasons to come,” he told US broadcaster ABC News earlier in the week.

The meeting between Xi Jinping and Donald Trump has ended.

Trump has reportedly boarded his Air Force One plane and left South Korea for the United States.

There was a conversation between the two leaders for about an hour and 40 minutes.

At the end of the talks he did not comment to the journalists. The outcome of the talks was not immediately clear.

Shortly before landing in Busan for his meeting with Xi, Trump posted that he would increase nuclear weapons testing.

In a post on his Truth social platform, the US President said he had instructed the Defense Department to immediately begin nuclear weapons testing “due to the testing programs of other countries (sic)”.

His post came after Russian President Vladimir Putin announced on Wednesday that Russia had successfully test-fired the Poseidon nuclear-powered super torpedo.

Military analysts say the weapon, which could be armed with nuclear warheads, is capable of devastating coastal areas by creating huge radioactive waves in the ocean.

Just a few days ago, Russia also tested a new nuclear-capable Burevestnik cruise missile and conducted a nuclear launch exercise.

Trump said in the post that Russia has the most nuclear weapons after America. He wrote, “China is in third place, but will be equal within 5 years.”

There was no indication that the US would begin detonating warheads.

The US last tested an underground nuclear weapon in 1992 in Nevada. From 1945 to 1992, the United States conducted 1,030 nuclear tests, far more than any other country.

based in usa The Arms Control Association has a great fact sheet about which countries have tested nuclear weapons and whereIf you want to know more.

In his opening statement, Xi Jinping also told Donald Trump that trade negotiators of the two countries have reached a basic agreement on a trade deal.

Officials from both countries met in Malaysia last week to lay the groundwork for their leaders.

Afterward, China’s top trade negotiator Li Chenggang said they had reached a “preliminary consensus.”

That statement was confirmed by US Treasury Secretary Scott Besant, who told broadcaster NBC on Sunday that he believed “we have the framework for both leaders to have a very productive meeting for both sides.”

At the start of the meeting with Donald Trump, Chinese President Xi Jinping said the US and China should be “partners and friends” despite “conflicts”.

“Given our different national circumstances, we don’t always see eye to eye,” he said through a translator. “It is normal for the world’s two major economies to clash from time to time.”

But, Xi said, the two countries should strive to be “partners and friends.”

“China and the United States can jointly shoulder our responsibilities as leading countries and work together to achieve more great and concrete things for the well-being of our two countries and the entire world,” Xi said.

Aboard Air Force One en route to South Korea, US President Donald Trump told reporters he might ease tariffs imposed on China related to its role in manufacturing fentanyl earlier this year.

“I look forward to getting them down because I believe they will help us deal with the fentanyl situation,” Trump said. He later said, “Relations with China are very good.”

China is the main source of fentanyl precursors, chemicals used to make the opioid fentanyl, which is one of the main contributors to fatal overdoses in the United States.

20% of US import tariffs on China are linked to the country’s role in fentanyl production.

In the days before the meeting, US officials also indicated that Trump did not intend to cash in on his recent threat to impose additional 100% import taxes on Chinese goods.

On October 10, Trump threatened a 100% import tax due to China’s rare earth sanctions.

This is not the first threat of significant tariffs. In April, Trump announced plans to raise rates on Chinese goods to 145%, but those plans were abandoned due to the market downturn.

US President Donald Trump met Chinese leader Xi Jinping face to face.

It is a chance for the leaders of the world’s two largest economies to stabilize relations after months of turmoil over trade issues and tariff threats.

We’ll bring you news, information and analysis as it comes.