US President Donald Trump and Chinese President Xi Jinping held their first face-to-face meeting in six years in Busan, South Korea, on Thursday. The two leaders discussed a wide range of issues — from tariffs and trade to rare earths, Ukraine, and fentanyl trafficking.
Calling it a “great success,” Trump announced a series of decisions that could ease tensions between US and China after years of fluctuating trade relations. He also confirmed plans to visit China in April next year.
Trump-Xi Meeting: Key Takeaways
1. Trump Announces Tariff Cuts on China
Trump said he had agreed to reduce tariffs on Chinese imports, particularly those linked to fentanyl-related trade. “I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” Trump said aboard Air Force One after the meeting.
The tariffs will drop from 57% to 47%, and fentanyl-related tariffs will be reduced from 20% to 10%. Trump said he believes Xi will “work very hard to stop the death that’s coming in,” referring to fentanyl-related overdose deaths in the US. The decision marks a major reversal from earlier months, when Trump had threatened to raise import taxes as high as 145%.
2. US-China Cooperation on Ukraine
Trump said he and Xi had a detailed discussion on the war in Ukraine. “Ukraine came up very strongly. We talked about it for a long time, and we’re both going to work together to see if we can get something,” Trump said.
He added, “Sometimes, you have to let them fight, I guess, not a lot we can do,” suggesting limited US involvement in Europe going forward. This signals a new phase of diplomatic coordination between the US and China, countries often on opposing sides of global conflicts.
3. China to Resume US Soybean Purchases
In another key outcome, Trump announced that China would resume large-scale purchases of US soybeans immediately. “Large amounts of soybeans will be purchased immediately,” Trump said, without giving specific figures.
According to trade sources, China’s state-owned COFCO has already bought three US soybean cargoes — its first since the 2025 harvest began.
4. Rare-Earths Deal Secured
Trump confirmed that both nations had reached a deal to ensure the steady flow of rare earth minerals from China to the US. “All the rare earth issues have been settled,” Trump said, calling it a one-year deal that could be extended.
China is the world’s largest producer of rare earths — materials crucial for fighter jets, electric vehicles, and advanced electronics. Beijing had tightened its export restrictions earlier this month, raising global concerns. This agreement helps ease fears about potential shortages in key manufacturing industries.
5. Trump to Visit China in April
Concluding the meeting, Trump said he plans to visit China in April, while Xi Jinping is expected to visit the US later. “I’ll be going to China in April and he’ll be coming here sometime after that,” Trump said. “A lot of things we brought to finalisation.”
He described Xi as a “tremendous leader of a very powerful country” and hinted that more deals — including discussions about Nvidia chip access — could follow.
A Step Toward a Fragile Trade Peace
The Trump-Xi meeting signals a potential thaw in US-China relations after years of tariff wars and tech restrictions. Analysts say the talks could restore a degree of predictability to global markets if both nations honour their commitments.
While China has not yet issued an official statement on the meeting, Trump’s remarks indicate that both sides may be moving toward a pragmatic reset — balancing rivalry with economic cooperation.
