U.S. and China Reach Trade Agreements Following Trump-Xi Meeting

In Busan, South Korea, U.S. President Donald Trump and Chinese President Xi Jinping convened on October 30, 2025, to address escalating trade tensions between their nations. The meeting resulted in several key agreements aimed at de-escalating the ongoing trade conflict.

The United States agreed to reduce tariffs on Chinese goods by 10 percentage points, lowering the overall tariff rate to approximately 47%. In return, China committed to resuming purchases of U.S. soybeans and other agricultural products, providing relief to American farmers affected by previous trade disputes.

China also agreed to suspend its rare earth export licensing measures for one year, ensuring continued supply of these critical materials essential for various industries, including technology and defense.

Additionally, both nations pledged to collaborate on combating the illicit flow of fentanyl into the United States, with China committing to stricter regulations on precursor chemicals contributing to the opioid crisis.

Discussions also touched upon China's access to U.S.-made semiconductors. While China expressed interest in purchasing computer chips from U.S. manufacturers, advanced technologies such as Nvidia's Blackwell AI chip were excluded from the agreement.

The leaders did not address the issue of Taiwan during this meeting. The agreements reached are set to last one year, with expectations of annual renewal, reflecting a shared desire to promote stability in U.S.-China relations.