President Donald Trump and Chinese leader Xi Jinping met on Thursday in Busan, South Korea, shaking hands for a brief photo op before closed-door talks focused on tariffs, fentanyl measures and access to rare earths.
Trump slashes China tariffs to 47% after ‘amazing’ Xi meeting
U.S. President Donald Trump said on Thursday he had agreed to reduce tariffs on China to 47% in exchange for Beijing resuming U.S. soybean purchases, keeping rare earths exports flowing and cracking down on the illicit trade of fentanyl.
His remarks after face-to-face talks with Chinese President Xi Jinping in the South Korean city of Busan, their first since 2019, marked the finale of Trump’s whirlwind Asia trip on which he also touted trade breakthroughs with South Korea, Japan and Southeast Asian nations.
Trump Xi Meeting
“We’re going to have a very successful meeting,” Trump told reporters, while noting of Xi, “But he’s a very tough negotiator.”
Asked whether the two would announce a trade deal, Trump said, “Could be.” Officials on both sides signalled hopes for a pause in escalating measures, with potential gestures including a delay to tariff hikes and eased export curbs on strategic minerals.
Whereas, Chinese President Xi Jinping said “it feels very warm” seeing President Donald Trump again.
“We have spoken on the phone three times, exchanged several letters and stayed in close contact,” he said.
“Given our different national conditions, we do not always see eye to eye with each other, and it is normal for the two leading economies of the world to have friction now and then.”
He said negotiating teams had “reached basic consensus” and “made encouraging progress,” adding he is “ready to continue working with you to build a solid foundation for China US relations.”
Chinese President Xi Jinping said China’s development “goes hand in hand with” President Donald Trump’s vision to “make America Great Again,” adding the two nations “must be partners and friends.”
“This is what history has taught us and what reality demands,” he said, hailing “basic consensus” and “encouraging progress” in trade talks and telling Trump, “Mr President, I’m ready to work with you to build a solid foundation for US-China relations.”
Xi praised Trump’s enthusiasm for “settling various regional hotspot issues,” citing his “great contribution to the recent conclusion of the Gaza ceasefire agreement” and to a Cambodia–Thailand peace deal.
When & where
- Time/Place: Trump-XI meeting is expected on Thursday 11 am KST in Busan, South Korea.
- Context: Meeting aims to tone down tensions and restore a fragile trade war truce after months of tariff threats and controls on rare earth minerals.
- Expectation: A pause on confrontation, leaders may announce narrow steps and keep bigger issues for later.
Core agenda items
- Tariffs: Trump has recently threatened 100% hikes however both sides are exploring a hold on new duties.
- Fentanyl: China weighing measures against precursor chemicals and money laundering networks tied to trafficking.
- Rare earth minerals: Potential easing or delay of Chinese export curbs to stabilise high tech supply chains.
- Agriculture: Signs of soybean purchases from China, resuming to support US farmers.
- Tech & apps: Discussion space for a TikTok solution that keeps the app operating in the US.
Possible “mini-deal”
- Washington: Defer broad tariff hikes and explore export control walk-backs.
- Beijing: Loosen rare-earth restrictions, expand farm imports and targeted fentanyl actions.
- Optics: Mutual gestures, photo-ops, and pledges to keep diplomatic engagements (follow-on meetings in Beijing and the US).
What both sides want
- US: Quick relief on fentanyl, market access signals, and farm sales, time to work longer-term issues.
- China: Space to avoid new US tariffs, delay rare-earth limits fallout, and keep tech trade lines open.
- Shared goal: De-escalation without giving up leverage and expect careful wording and limited specifics.
Why no big breakthrough is likely
- Structural gaps remain: Market access, industrial overcapacity, export controls, and tech security.
- Both sides value leverage: Tariffs and resource choke points are bargaining tools they won’t discard quickly.
- Analyst consensus: Outcome will be “modest and vague” but expect enough progress to set up the next round.
Politics & geopolitics to watch
- Taiwan: US signals no trade-off on Taiwan however Trump says topic may not be central in Busan.
- Allies first: US met Japan, South Korea, ASEAN partners ahead of Beijing, signal that alliances aren’t on the table.
- Regional mood: Businesses want predictability that any tariff freeze or rare-earth reprieve will calm markets.
The read out checklist (after the meeting)
- Tariffs: Was any deadline pushed or rate reduced?
- Rare earths: Is there a formal delay to Chinese curbs?
- Fentanyl: Concrete enforcement steps or just framework language?
- Ag buys: Size/timing of soybean (and other) purchases.
- Next steps: Dates for Xi-Trump follow ups in China and the US.
