US-China tariff cuts, rare-earths deal, soybean purchases: 5 key announcements from Trump-Xi meeting in South Korea

US President Donald Trump said Thursday that he had agreed to cut fentanyl-related tariffs on China to 10 percent after talks with Xi Jinping in South Korea. He said tariffs on China have been slashed to 47 percent from 57 percent — in exchange for Beijing resuming US soybean purchases, keeping rare earths exports flowing and cracking down on the illicit trade of fentanyl.

He also said a dispute between China and the United States had been “settled”. China did not provide an immediate comment on the meeting or any outcomes.

US President Donald Trump said on Thursday that his meeting with Chinese President Xi Jinping was a “great success”. After less than two hours of the crucial bilateral meeting with Xi, Trump announced five key decisions. They were:

1. Tariff cuts: Trump agreed to cut fentanyl-related tariffs on China from 20% to 10% effective immediately. Aboard Air Force One jet after Xi talks, Trump said tariffs on China are dropping from 57 percent to 47 percent after talks on fentanyl curbs with Xi Jinping.

“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” Trump said, later adding, “The relationship with China is very good.”

“I believe he’s [Xi] going to work very hard to stop the death that’s coming in,” Trump said.

China faced new US tariffs this year totaling 30 percent, of which 20 percent has been tied to its role in fentanyl production. But the tariff rates have been volatile. In April, he announced plans to jack the rate on Chinese goods to 145 percent, only to abandon those plans as markets recoiled.

Then, on October 10, Trump threatened a 100 percent import tax because of China’s rare earth restrictions.

2. Ukraine war: Trump said he and Xi Jinping had agreed to “work together” on the issue of Ukraine.

“Ukraine came up very strongly. We talked about it for a long time, and we’re both going to work together to see if we can get something,” he told reporters on Air Force One.

Xi is “going to help us, and we’re going to work together on Ukraine”, Trump said. He, however, said, “Sometimes, you have to let them fight, I guess, not a lot we can do’

3. Soybean purchases: Trump said “large amounts” of soybeans will be purchased immediately. Beijing will start buying the oilseed immediately, Trump said, without providing any details on volumes.

His statement came after China resumed soybean purchases just ahead of talks. China’s state-owned COFCO bought three US soybean cargoes, two trade sources told Reuters – the country’s first purchases from this year’s US harvest.

4. Rare-Earth deal: Trump said he clinched a deal with China’s Xi on rare earths and that the China rare earths deal is one year, extendable. He said China agreed to keep rare earth exports flowing “All the rare earth issue has been settled,” he said.

China is the top producer and processor of the rare earth minerals which are needed to make fighter jets, robots, electric vehicles and other high-tech products. China had tightened export restrictions on October 9.

US President Donald Trump and China’s leader Xi Jinping held their first face-to-face meeting in six years, seeking a truce to end a trade war that has roiled the world economy.

The export controls on rare earths announced by Beijing this month was among the key issues discussed during the Trump-Xi meeting in Busan on Thursday.

5. Trump plans China trip: Trump described his meeting with China’s leader Xi Jinping as a “great success.” He also shared his plans to head to China in April for new talks.

“I’ll be going to China in April and he’ll be coming here sometime after that, whether it’s in Florida, Palm Beach or Washington, DC,” Trump told reporters on Air Force One.

“A lot of things we brought to finalisation” at Thursday’s talks in Busan, South Korea, added Trump, praising Xi as a “tremendous leader of a very powerful country”.

Trump also said he had discussed Chinese access for Nvidia Corp.’s chips but indicated that he would not offer access to their most advanced Blackwell line.