Trump-Xi Breakthrough In Busan: Tariff Cuts, Rare Earth Deal, Reset In US-China Relations – Key Takeaways
US and China have agreed to a “truce” in their trade war. Image courtesy: X.com/@WhiteHouse
For the past few months, it was a tough Uncle Sam vs Chinese Dragon battle, with no side showing signs of weakness. When one acted, the other counteracted and how! This is what the US and China relations have been looking like since the start of Donald Trump’s second term as the United States President.
Tariffs, reciprocal tariffs, retaliatory measure and what not. Everything seemed to pushing both the side further apart. However, a high-stakes meeting between Donald Trump and his Chinese counterpart Xi Jinping seems to have achieved the impossible – a likely truce on tariffs, among other things.
In what is being hailed as a significant geopolitical breakthrough, US President Trump on Thursday (October 30, 2025) described his meeting with Chinese President Xi in South Korea’s Busan a “great success,” marking a possible thaw in the strained ties between Washington and Beijing.
Trump will be going to China in April 2026 and Xi will be coming to the US sometime after that – whether it’s in Florida, Palm Beach, or Washington, DC, the US President told reporters aboard Air Force One after the talks. The two leaders met on the sidelines of regional engagements in Busan to discuss trade, security, and strategic issues.
Trump-Xi talks: What key agreements emerged?
Easing some tensions that have long defined the uneasy balance between the world’s two largest economies, the meeting yielded a few positive results. US President Trump announced that the two nations had finalised a one-year deal on the supply of rare earths — critical minerals that power everything from semiconductors to defence systems — describing the agreement as “for the world.”
He added that the deal will be renewed annually, a move that could have sweeping implications for global supply chains and technology industries.
In another major development, Trump revealed that he had agreed to cut fentanyl-related tariffs on China from 20% to 10%, effective immediately. “As you know, I put a 20% tariff on China because of the fentanyl coming in, which is a big tariff,” Trump told reporters. “I reduced it by 10% so it’s 10% instead of 20%, effective immediately.”
China confirmed that will take average tariffs on Chinese goods to 47%, down from 57%
How Trump rated his meeting with Xi?
Calling Xi “a tremendous leader of a very powerful country,” Trump said the talks had brought “a lot of things to finalisation.” When asked to rate the meeting, he gave it a “12 out of 10,” underscoring his optimism for future cooperation. The leaders’ face-to-face meeting, lasting just over 100 minutes, was marked by symbolic gestures of reconciliation.
They shook hands warmly, and Trump was seen speaking briefly into Xi’s ear before the Chinese president departed for his limousine.
Trump-Xi meeting: Key takeaways
The two presidents agreed to enhance cooperation in economic, trade, energy and other fields and to encourage more people-to-people exchanges.
Trump and Xi agreed to maintain interactions on a regular basis.
Xi authorised China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.
China agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely.
China will work diligently with the US to stop the flow of Fentanyl.
China agreed to begin the process of purchasing American Energy. A very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.
What about the TikTok Deal?
As of yet, there is no deal, with China saying it will work with the Trump administration to resolve issues related to TikTok’s ownership. “China will work with the U.S. to properly resolve issues related to TikTok,” China’s Commerce Ministry said after Xi’s meeting with Trump.
It gave no details on any progress toward ending uncertainty about the fate of the popular video-sharing platform in the US.
What’s next for US-China engagement?
Trump confirmed he will visit China in April 2026 for continued discussions, while Xi is expected to make a reciprocal visit to the United States later in the year. The announcement signals a renewed effort to stabilise relations that have been strained by trade tensions, technology bans, and military rivalry in the Indo-Pacific.
The meeting in Busan, about 76 kilometres from Gyeongju, the main venue for the Asia-Pacific Economic Cooperation (APEC) Summit, is seen by analysts as an attempt to reset the tone of US-China dialogue ahead of broader regional negotiations.
Worth noting here is that the Trump-Xi engagement in Busan marks one of the most consequential diplomatic moments of the year. By addressing issues such as rare earths supply and fentanyl tariffs, the talks could reshape global trade stability, technology access, and strategic trust between the two superpowers.
