In a major breakthrough in U.S.–China trade relations, President Donald Trump announced a 10% cut in tariffs on Chinese imports following high-level talks with President Xi Jinping in Busan, South Korea. The discussions, held ahead of the 2025 APEC Summit, reportedly led to key agreements on multiple trade fronts — including the long-standing dispute over rare earth exports. Trump stated that the U.S. will reduce overall tariffs on Chinese goods from 57% to 47%, while fentanyl-related tariffs will be halved from 20% to 10%. “We focused on export controls of China on rare earth, and they’re going to keep those flowing, which is quite important,” Trump said, calling the deal a “huge relief for global manufacturing and clean energy sectors.”

The rare earth issue had been one of the most contentious points in U.S.–China relations, given Beijing’s near-monopoly over the global supply of these critical minerals. Trump confirmed that the U.S. and China have signed a one-year trade pact to ensure the uninterrupted flow of rare earth materials, vital for industries ranging from electric vehicles to defense technology. “There’s no roadblock at all now on rare earths — it will hopefully disappear from our vocabulary for a little while,” he remarked. Trump described his meeting with Xi as “amazing,” praising the Chinese leader as a “very tough negotiator” and rating their talks “12 out of 10.” He also revealed that China has agreed to resume large-scale purchases of American soybeans as part of the new trade framework.

This diplomatic development marks a significant shift in tone from the escalating tariff threats that had unsettled global markets in recent weeks. Trump’s administration had earlier warned of imposing 100% tariffs on Chinese goods starting November 1 in response to Beijing’s expanded export restrictions on rare earth magnets and minerals. However, negotiators from both nations reportedly reached a compromise last weekend, laying the groundwork for the current agreement. While the White House has yet to release full details of the trade pact, analysts see this move as a tactical de-escalation that could stabilize U.S.–China relations and bring temporary relief to industries reliant on rare earth imports.