Busan, October 30, 2025 – U.S. President Donald Trump announced on Thursday that he had reached a breakthrough agreement with Chinese President Xi Jinping to ease trade tensions, marking their first in-person meeting since 2019.
Speaking after nearly two hours of face-to-face talks in the South Korean city of Busan on the sidelines of the APEC Summit, Trump said the United States would reduce tariffs on Chinese goods in exchange for Beijing resuming U.S. soybean imports, continuing rare earth exports, and tightening its crackdown on fentanyl trafficking.
The meeting concluded Trump’s whirlwind Asia tour, during which he also touted trade progress with South Korea, Japan, and ASEAN nations. Trump described the talks with Xi as a “great success,” announcing a one-year extendable deal to secure global rare earth supplies—a sector vital for advanced technologies.
“All the rare earths have been settled, and that’s for the world,” Trump told reporters aboard Air Force One, adding that the agreement would be reviewed annually. He also confirmed plans to visit China in April 2026, with Xi expected to make a reciprocal visit to the United States later in the year.
The news sparked a rally in global markets, with Chinese stocks soaring to decade highs and the yuan strengthening to a near one-year peak. Investors welcomed the easing of trade frictions that had disrupted supply chains and dampened global confidence.
Despite the positive signals, analysts cautioned that the truce may prove temporary, as Washington and Beijing continue to vie for influence across economic and geopolitical fronts.
Reuters | AFP
