Trump cuts China tariffs to 47% after meeting with Xi Jinping

US President Donald Trump announced Thursday that he had agreed to reduce tariffs on Chinese imports to 47 percent following high-stakes talks with Chinese President Xi Jinping in Busan, South Korea.  a meeting aimed at resetting the world’s most consequential trade relationship.

Speaking to reporters aboard Air Force One after departing Busan, Trump called the face-to-face meeting with Xi “an amazing discussion,” describing it as a “major step forward” in efforts to stabilize economic ties. He said Beijing had agreed to resume large-scale purchases of US soybeans, maintain uninterrupted exports of rare earth materials, and intensify efforts to curb the smuggling of fentanyl and its chemical precursors into the United States.
“I think this is a win-win for both nations. We’re cutting tariffs to 47 percent, down from 57 percent, and in return, we’re getting real commitments from China,” Trump said.
The meeting — their first since 2019 — was held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit and lasted nearly two hours. Trump personally escorted Xi to his car afterward, signaling what observers described as a deliberate show of goodwill.
Financial markets reacted nervously to the news, with Asian and European stock indexes fluctuating as details of the deal emerged. China’s Shanghai Composite Index slipped from a decade-high, while US soybean futures weakened slightly amid questions about the pace of China’s resumed purchases.
In the days leading up to the summit, global markets had rallied on hopes of a breakthrough in the years-long trade war between Washington and Beijing, which has disrupted global supply chains and rattled investor confidence.
The Busan meeting capped Trump’s weeklong Asia tour, during which he announced trade and investment deals with South Korea, Japan, and several ASEAN nations, reflecting his administration’s renewed focus on building economic alliances across the Indo-Pacific.
According to US officials, the new US-China understanding includes provisions for continued dialogue on industrial subsidies, digital trade, and intellectual property protection, though no comprehensive agreement was finalized.
While both leaders projected optimism, analysts cautioned that the détente could prove fragile amid deep-seated tensions over technology competition, regional security, and Taiwan.
“Trump may have secured a short-term trade win, but the structural issues remain unresolved,” said a senior Asia-Pacific trade analyst. “The US and China are still strategic rivals — this agreement buys time, not peace.”
Despite the uncertainty, Trump hailed the deal as a significant milestone, saying, “This is about fairness, balance, and mutual respect. It’s a great day for American farmers, workers, and businesses — and a good day for China too.”