Key Takeaways
- Tariffs Trimmed in Exchange for Action: President Trump agreed to reduce tariffs on Chinese imports from 57% to 47% after Beijing pledged to crack down on the flow of fentanyl and resume large-scale U.S. soybean purchases.
- Rare Earth Export Controls Suspended: China will pause new export restrictions on rare earth minerals for one year, preserving a critical supply chain for U.S. industries that rely on high-tech components.
- Business and Security Win for America: The agreement stabilizes trade relations, supports U.S. farmers and manufacturers, and reinforces America’s negotiating power—while keeping pressure on Beijing to follow through.
President Donald Trump wrapped up his Asia tour with a high-stakes meeting in Busan, South Korea, where he struck a new trade agreement with Chinese President Xi Jinping—one aimed at easing economic tensions while tackling two of America’s biggest concerns: fentanyl and rare earths.
Under the deal, the U.S. will shave tariffs on Chinese imports from 57% to 47%, including a halving of tariffs on fentanyl precursor drugs, in exchange for Beijing’s pledge to “work very hard to stop the flow” of the deadly synthetic opioid. Xi also agreed to resume U.S. soybean purchases and suspend export controls on rare earth minerals for one year, keeping critical supply chains stable for American manufacturers.
“It was an amazing meeting,” Trump told reporters aboard Air Force One, calling it a “12 out of 10.” The agreement also delays for a year a measure restricting Chinese firms tied to sanctioned companies from accessing U.S. technology. Treasury Secretary Scott Bessent confirmed that China will purchase 12 million metric tons of U.S. soybeans by January and 25 million annually over the next three years. Beijing also approved U.S.-controlled ownership of TikTok and expressed interest in investing in Alaska’s $44 billion LNG project.
Trump’s deal offers what analysts describe as a “temporary calm” in an ongoing trade war. While global markets reacted cautiously, business leaders welcomed the breathing room. “The tariff cut in exchange for a promised fentanyl crackdown buys temporary calm, but it’s transactional relief—not a structural reset,” said Craig Singleton of the Foundation for Defense of Democracies.
Critics like Sen. Chuck Schumer dismissed the agreement, claiming “Trump folded on China.” But the president’s supporters argue the deal reinforces America’s leverage through pragmatic diplomacy. As Trump put it, “We’re not playing games with them, and they’re not playing games with us either.”