US President Donald Trump on Thursday announced a 10% reduction in tariffs on Chinese goods, bringing them down from 57% to 47%, following trade discussions with Chinese President Xi Jinping in Busan, South Korea.

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Rare Earth Issue “Settled”Fentanyl Tariffs Cut to 10%‘We Have a Deal,’ Says Trump China to Resume Soybean Purchases Background: Meeting Ahead of APEC Summit

Trump said that Washington and Beijing have reached several key understandings on trade and cooperation, particularly regarding the rare earths sector, which has been a point of contention between the two countries.

Rare Earth Issue “Settled”

Speaking to reporters aboard Air Force One, Trump said the rare earth export issue has been resolved and confirmed that the US has signed a one-year trade pact with China.

“We focused on export controls of China on rare earth, and they’re going to keep those flowing, which is quite important,” Trump said.

He emphasized that there is no roadblock at all on rare earth supplies, expressing optimism that the issue will “hopefully disappear from our vocabulary for a little while.”

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Fentanyl Tariffs Cut to 10%

In addition to general tariff cuts, Trump announced a reduction in fentanyl-related tariffs on Chinese imports, lowering them from 20% to 10%. The move signals a further easing of trade tensions between the two nations following months of escalating tariff threats.

‘We Have a Deal,’ Says Trump

Describing his meeting with Xi as “amazing”, Trump praised the Chinese President as “a great leader” and noted that “a lot of decisions were made” during their discussions.

“We have come to a conclusion on many important points and we will be handing them to you in a little while,” he said.

Trump rated the meeting “12 out of 10” and said both nations have reached key understandings on trade and cooperation.

China to Resume Soybean Purchases

Trump also mentioned that China will resume buying large quantities of US soybeans, a move he “appreciated.” The comment came amid optimism about renewed agricultural trade between the two countries.

Background: Meeting Ahead of APEC Summit

The Busan meeting took place ahead of the 2025 APEC Summit, with Trump earlier hinting at the possibility of a trade deal. When asked by reporters if he planned to sign one, Trump had said, “could-be,” signaling cautious optimism.

He described his relationship with Xi as “fantastic” and expressed confidence in long-term cooperation, calling Xi a “very tough negotiator.”

Tariffs Threat and Urgency of Talks

The meeting carried significant importance as Trump had earlier threatened new 100% tariffs on Chinese goods effective November 1, in retaliation for China’s expanded export controls on rare earth magnets and minerals.

However, US negotiators confirmed before the meeting that they had reached a framework agreement with China to avoid the 100% tariffs and defer Beijing’s export curbs in the rare earth sector.

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