Trump Cuts China Tariffs to 47% After ‘Amazing’ Meeting with Xi Jinping

U.S. President Donald Trump announced on Thursday that he had agreed to reduce tariffs on Chinese imports to 47%, following what he called an “amazing meeting” with Chinese President Xi Jinping.

The agreement came during their first face-to-face meeting since 2019, held in the South Korean city of Busan on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.

Deal Highlights

Under the new understanding, China will resume purchases of U.S. soybeans, continue rare-earth mineral exports, and take strong action against illegal fentanyl trade, which has been a major issue in the U.S.

Speaking aboard Air Force One after the talks, Trump said,

“I thought it was an amazing meeting.”
He confirmed that tariffs on Chinese goods would drop from 57% to 47%, calling it a major step toward stabilizing global trade.

Markets React

Global stock markets reacted with mixed signals following the announcement. Asian and European indexes swung between gains and losses, while China’s Shanghai Composite Index slipped from a 10-year high.

Before the meeting, hopes for a trade truce had pushed world markets, including Wall Street and Tokyo, to record levels. Analysts said the tariff cut may help calm global supply chains and improve business confidence, though uncertainty remains.

Background of the Talks

The Busan meeting lasted nearly two hours. Trump and Xi shook hands, exchanged smiles, and discussed trade and technology issues. Trump later escorted Xi to his car before receiving a red-carpet farewell at the airport.

The talks concluded Trump’s five-day Asia trip, during which he also signed new trade agreements with Japan and Southeast Asian nations focused on rare-earth resources.

Ongoing Issues

Despite the progress, both sides are still at odds over key issues like Taiwan, export controls, and maritime trade dominance.

China’s H-6K bombers recently flew near Taiwan for “confrontation drills,” raising regional concerns. U.S. Secretary of State Marco Rubio said Taiwan should not worry, assuring that Washington remains committed to the island’s defense.

Future of the Trade Truce

Analysts say the deal could bring short-term relief but question how long the détente will last. Previous agreements between the two nations, which reduced tariffs to around 55% on the U.S. side and 10% on the Chinese side, expire on November 10.

For now, Trump’s announcement signals a pause in tensions, with both powers seeking economic stability amid growing strategic rivalry.