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Trump, Xi call a truce in trade war, pause tariff hikes and rare earth restrictions

Published: 30 Oct. 2025, 19:37 Updated: 30 Oct. 2025, 19:39

U.S. President Donald Trump, left, meets with Chinese President Xi Jinping at an Air Force base at Gimhae International Airport in Busan on Oct. 30. [YONHAP]

GYEONGJU, North Gyeongsang — U.S. President Donald Trump and Chinese President Xi Jinping agreed to pause their respective tariff hikes and rare earth export controls during a summit on Thursday, signaling a truce in the trade war that has dragged on for nine months.

While not quite a “big deal,” the agreement goes beyond a minor compromise and is being interpreted as a meaningful de-escalation in tensions.

The two leaders met at Naraemaru, inside the Air Force base at Gimhae International Airport in Busan, on Thursday, where they reaffirmed their mutual desire to restrain escalating trade issues. China agreed to postpone its rare earth export restrictions for one year, and the United States reduced its 20 percent tariff on Chinese-made fentanyl to 10 percent.

A planned 100 percent additional tariff — which Washington had warned would take effect in November — was also scrapped. As a result, average tariffs on Chinese products will drop from between 55 and 57 percent to between 45 and 47 percent.

Washington and Beijing invested significant diplomatic capital to reach this agreement, from working-level talks to the summit itself. The framework was first established at the fifth round of high-level trade negotiations held on Saturday and Sunday in Malaysia.

Meeting for the first time in more than six years — since the Group of 20 summit in June 2019 in Japan — both leaders worked to preserve the rare opportunity for dialogue by exercising mutual restraint.

“It’s a great honor to be with a friend of mine, really for a long time now if you think about it,” Trump said during opening remarks.

U.S. President Donald Trump boards Air Force One at Gimhae International Airport in Busan on Oct. 30, en route to Joint Base Andrews. [AP/YONHAP]

“In the face of winds, waves and challenges, we should stay the right course, navigate through the complex landscape, and ensure the steady sailing forward of the giant ship of China-U.S. relations,” Xi said.

He further emphasized coexistence, saying, “China and the United States should be partners and friends.”

He added that China and the United States "should maintain communication through various channels and at various levels to enhance mutual understanding” and “engage in positive interactions on regional and international platforms," citing Trump's involvement in efforts to broker a cease-fire in Gaza and agreements on the Thailand-Cambodia border.

Xi’s remarks were tailored praise for Trump’s role as a self-declared mediator in global conflicts.

Trump did not take questions from the press following his opening remarks, a move seen as a show of respect toward Xi, who is unaccustomed to such exchanges.

After the summit, Trump expressed satisfaction. “We’ve already agreed to a lot of things, and we’ll agree to some more right now,” he said.

Chinese President Xi Jinping walks down from his private plane upon arrival at Gimhae International Airport on Oct. 30. [YONHAP]

When asked aboard Air Force One about the signing date of the agreement, Trump said, “Very soon,” and noted there were “very few remaining hurdles.”

On China’s rare earth export controls — a sensitive issue for the United States — Trump said that all issues have been “resolved.” He further said that while the suspension is for one year, it will likely be extended as a matter of routine.

Regarding the fentanyl tariff reduction, Trump said he trusts China will implement additional measures. His administration has pressured China to clamp down on fentanyl, a drug component that has fueled a crisis in the United States.

Trump also said that China has committed to vigorously enforcing domestic regulations related to fentanyl, adding, “They will help us end the fentanyl crisis.”

China is also expected to lift its restrictions on imports of American soybeans — a retaliatory measure it had implemented in May. “Our farmers will be very happy,” Trump said, adding that China will start buying “massive” amounts of soybeans from the U.S.

U.S. President Donald Trump, left, meets with Chinese President Xi Jinping during a meeting on the sidelines of the G-20 summit in Osaka, Japan on June 29, 2019. [AP/YONHAP]

Reuters reported on Wednesday that a Chinese state-run grain company had purchased 180,000 metric tons of American soybeans — the first such order for the U.S. fall harvest this year.

However, the topic of allowing U.S.-made artificial intelligence chips — such as those from Nvidia — to be sold in China was reportedly discussed only in part.

Trump also said the relaxation of export controls on Nvidia’s latest Blackwell chip wasn’t addressed. “We’ll see whether China and Nvidia can work something out,” he said, adding that the United States was acting as a “sort of referee.”

Trump also said that topics such as Taiwan and China’s imports of Russian crude oil were not discussed in-depth. When asked about Taiwan during a photo session before the summit, he simply guided Xi away from reporters.

The summit’s focus on easing tensions with China appeared to exclude potentially provocative issues — a move interpreted as an effort to avoid stoking new conflict. As a result, critics say the two countries opted for short-term stabilization measures to avert immediate crises.

Trump concluded by saying that he would visit China in April next year, and that Xi would come to the United States sometime after that, whether to Florida or Washington.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE KEUN-PYUNG,CHANG YOON-SEO [[email protected]]