U.S. President Donald Trump and Chinese President Xi Jinping met on October 30, 2025, in Busan, South Korea, to negotiate a resolution to escalating trade tensions between their nations. This summit marked their first in-person meeting since 2019.

During the discussions, President Trump announced that the U.S. would reduce tariffs on Chinese goods from 57% to 47%, including a decrease from 20% to 10% on chemicals used in fentanyl production. In return, China agreed to lift export restrictions on rare earth minerals and resume purchasing American soybeans. The two leaders also agreed to pause retaliatory port fees and other trade restrictions for one year.

President Trump characterized the meeting as highly successful, rating it a "12 out of 10." He expressed optimism about future engagements, including a planned visit to China in April 2026 and a reciprocal visit by President Xi to the U.S. The leaders also discussed cooperation on artificial intelligence, immigration, and disease prevention, though they did not address issues related to Taiwan.

Despite the positive developments, market reactions were mixed. Asian stock markets showed signs of stabilization, but oil prices remained relatively unchanged, indicating investor caution amid ongoing global uncertainties.

This agreement aims to ease the trade war that has disrupted global supply chains and raised concerns about economic stability. While the deal addresses some immediate issues, it does not resolve all structural trade disputes between the two countries. Both leaders have indicated a willingness to continue negotiations to further improve bilateral relations.

Sources: AP News, Al Jazeera, Reuters