The world watched as US President Donald Trump and Chinese President Xi Jinping met on the sidelines of the APEC summit in Busan, South Korea—their first face-to-face meeting since 2019. After months of escalating trade tensions, the 100-minute discussion yielded significant agreements that could reshape US-China relations.
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Donald Trump-Xi Jinping Meeting : A Breakthrough in Trade Tensions
| Aspect | Details |
|---|---|
| Duration | 1 hour 40 minutes |
| Location | Busan, South Korea (APEC Summit) |
| Trump’s Rating | “12 out of 10” – called it “amazing” |
| Key Focus | Trade tariffs, rare earths, fentanyl, agricultural products |
Major Agreements Reached
Tariff Reductions and Trade Balance
Trump announced substantial progress on tariffs, stating that US tariffs on Chinese goods would drop from 57% to 47%. This move signals a de-escalation in the trade war that has disrupted global supply chains and business confidence since Trump’s first term.
According to Reuters, Chinese stocks climbed to a decade high as investors celebrated the potential easing of tensions between the world’s two largest economies.
The Rare Earths Resolution
One of the meeting’s most critical outcomes involved rare earth elements—materials essential for semiconductors and military applications. Trump confirmed that China agreed to a one-year deal to continue supplying rare earths, removing previous export restrictions. “All of the rare earth has been settled. That roadblock is gone now,” Trump emphasized.
This agreement addresses concerns about China’s dominance in the rare earth minerals sector, which had threatened American tech and defense industries.
Agricultural Wins for US Farmers
American soybean farmers received welcome news as China agreed to resume purchasing US agricultural products. This development ends a painful standoff that saw China—traditionally buying over $12 billion in US soybeans annually—completely halt purchases this year.
Treasury Secretary Scott Bessent predicted a “resounding victory” for American farmers, offering relief to midwestern agricultural communities caught in the trade war crossfire. Learn more about US agricultural trade policies on our business section.
Fentanyl Crisis Cooperation
Trump reported that Xi committed to “work very hard to stop the flow” of precursor chemicals used in fentanyl production. In response, Trump reduced the fentanyl-related tariff from 20% to 10%, showing both sides’ willingness to cooperate on this deadly crisis affecting thousands of American families.
What Wasn’t Discussed
Notably absent from the agenda was Taiwan—the self-governing democracy that China threatens to annex militarily. Trump confirmed Taiwan “never came up” during discussions, raising concerns in Taipei about potential US concessions on this sensitive issue.
Looking Ahead: Future Diplomatic Engagements
The leaders scheduled future meetings to maintain momentum. Trump will visit China in April, with Xi planning a reciprocal visit to the United States afterward, potentially in Florida, Palm Beach, or Washington DC.
Both leaders also agreed to collaborate on ending the Ukraine conflict, though Trump acknowledged the complexity: “Sometimes you’ve got to let them fight I guess. Crazy.”
For more insights on international relations and tech industry impacts, explore our comprehensive coverage.
Global Aspects
This meeting marks a significant turning point after years of deteriorating US-China relations. While challenges remain—particularly around technology, semiconductors, and Taiwan—the willingness of both leaders to negotiate demonstrates pragmatic diplomacy over confrontation.
The coming months will reveal whether these agreements translate into lasting change or merely temporary relief in an ongoing strategic competition.
Frequently Asked Questions
What were the main outcomes of the Trump-Xi meeting in South Korea?
The meeting produced several key agreements: US tariffs on China reduced from 57% to 47%, China agreed to resume buying US soybeans and continue exporting rare earths under a one-year deal, and both nations committed to cooperating on fentanyl precursor chemicals. Trump rated the meeting “12 out of 10” and announced plans for reciprocal state visits.
Why are rare earth elements important in US-China trade relations?
Rare earth elements are critical materials used in semiconductors, military equipment, electric vehicles, and advanced technologies. China dominates global rare earth production and had threatened export restrictions, which could have crippled American tech and defense industries. The agreement to maintain rare earth exports removes a major obstacle in bilateral trade relations.
