BUSAN, South Korea (FN) — U.S. President Donald Trump and Chinese President Xi Jinping agreed Wednesday to a series of measures aimed at easing trade tensions, including a reduction in punitive tariffs and a delay in China’s planned export controls on rare earth elements. The agreement followed a 100-minute meeting at Gimhae Air Base in Busan, marking the leaders’ first face-to-face encounter in over six years.
The U.S. will cut a 20% additional tariff on Chinese goods—originally imposed over concerns about fentanyl precursor imports—to 10%, lowering the total tariff rate from 57% to 47%. In return, China will postpone its rare earth export restrictions, which were set to begin December 1, by one year. Trump hailed the outcome as “a great meeting” and rated it “12 out of 10” during remarks aboard Air Force One.
President Xi emphasized the importance of long-term cooperation, stating, “We should value the long-term interests of U.S.-China cooperation and avoid falling into a vicious cycle of mutual retaliation.” He added that he hoped to foster a “good environment” for bilateral relations with President Trump.
The two sides also agreed to extend the suspension of ultra-high tariffs—some exceeding 100%—by one year. The temporary ceasefire, which had been renewed every 90 days since May, now enters a more stable phase. The U.S. had previously imposed tariffs as high as 145%, with China retaliating at rates up to 125%.
As part of the deal, China committed to purchasing 12 million tons of U.S. soybeans during the current harvest season, which ends in January, and 25 million tons annually for the next three years. U.S. Treasury Secretary Scott Bessent said the move would provide relief to American farmers, who have struggled amid China’s pivot to South American suppliers.
Trump also announced that the two nations would revisit the rare earth issue annually, though he declared the current dispute “completely resolved.” He added that the U.S. would continue to monitor fentanyl-related imports and praised Xi’s pledge to take “very strong measures” to curb the flow of synthetic opioids.
The leaders agreed to resolve the ongoing dispute over the U.S. operations of TikTok, the Chinese-owned video platform, through diplomatic channels. Meanwhile, the U.S. Trade Representative’s office confirmed that a Section 301 investigation into China’s trade and shipping practices would be paused during negotiations. China had responded to the probe by imposing port entry fees on U.S. vessels and sanctioning five American subsidiaries of Hanwha Ocean.
On the technology front, Trump clarified that the export of NVIDIA’s advanced AI chip, Blackwell, to China was not discussed. While the U.S. allows limited semiconductor exports, Chinese regulators have effectively blocked them by prohibiting domestic firms from purchasing the components. “We will watch as mediators,” Trump said, adding he would speak directly with NVIDIA CEO Jensen Huang.
Looking ahead, Trump is scheduled to visit China in April, with Xi expected to make a reciprocal trip to the U.S. later in the year. While the agreement signals a thaw in relations, both sides acknowledged that further negotiations are needed. “We expect the economic teams of both countries to quickly materialize follow-up work,” Xi said, hinting at the complexity of implementing the deal’s provisions.
