US-China Trade Deal: Tariffs Cut, Trade Ties Renewed
US-China Trade Deal: On 30 October 2025, a long-awaited meeting between US President Donald Trump and Chinese President Xi Jinping in Busan, South Korea has revived optimism in global trade and economic relations. The high-profile discussion, which lasted nearly two hours, resulted in several major decisions that have drawn global attention.
Key Highlights and Updates
Tariff Reduction
- President Trump announced a 10% reduction in tariffs imposed on China, bringing them down from 57% to 47%. The move is being seen as a crucial step towards easing tensions and improving bilateral relations.
- According to US officials, the tariff reduction will take immediate effect and will initially remain in place for one year, with the possibility of extension based on mutual review.
Relief for American Farmers
- Both sides agreed that China would resume purchases of American soybeans, which were worth around USD 24.5 billion last year but were halted due to the tariff dispute. The decision is expected to bring significant relief to US farmers by reopening a major export market.
Agreements on Technology and Minerals
The meeting also led to key agreements in the rare earth minerals and semiconductor sectors. China assured continued export of rare earth elements, which will ease pressure on US supply chains. Additionally, both sides discussed maintaining partnerships with American technology companies such as NVIDIA. The one-year rare earths agreement will be subject to annual review, signalling a step towards long-term stability and cooperation.
Strong Action on Fentanyl
- The Chinese government pledged strict action to curb the trafficking of fentanyl and similar dangerous drugs. President Trump said that concrete steps will be taken to address this issue effectively.
Progress in Trade and Future Roadmap
- Trump confirmed that there will no longer be any restrictions on Chinese exports to the US market. Both nations will work towards making trade smoother while safeguarding their respective interests.
- The two leaders also expressed agreement on broader cooperation and security issues. Trump hinted at a possible visit to China in May next year.
Conclusion
In today’s meeting under the US-China Trade Deal, the US and Chinese leaders made several significant decisions, including tariff reduction and enhanced cooperation in agriculture, minerals, and technology. The agreement has raised new hopes for the global economy, promising smoother trade and reduced supply chain disruptions. Most notably, the development has brought smiles back to the faces of American farmers.
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