Trump Announces Agreement With China After Meeting With Xi In South Korea

President Donald J. Trump, now in his second term, announced a breakthrough trade framework with Chinese leader Xi Jinping after a private diplomatic meeting in Busan, South Korea, on Wednesday — marking one of the most significant resets in U.S.–China economic relations in years.

The meeting came after President Trump posted a pointed message on Truth Social referencing nuclear weapons testing — a statement widely interpreted as a firm signal to Beijing not to miscalculate America’s strategic deterrence posture.

Despite ideological divides and simmering geopolitical tensions, Xi publicly characterized the interaction with President Trump as “warm,” emphasizing the importance of keeping lines of communication open. “It was good to see him again,” Xi said, stressing that the U.S. and China should maintain stability even amid disagreements.

Trump confirmed progress shortly afterward. “We have a deal,” he told reporters. “Every year we’ll renegotiate the deal, but I think it’ll go on for a long time.”

On Thursday, Trump announced that he would reduce tariffs on certain Chinese imports, citing new commitments from Beijing on several critical issues, according to Fox News. These include:

• Stronger enforcement against fentanyl trafficking
• Expanded agricultural purchases from U.S. farmers
• A temporary halt to China’s planned restrictions on rare-earth minerals

Leading up to the summit, U.S. and Chinese negotiators signaled the talks would center on tariffs, advanced semiconductor exports, and strategic competition across global supply chains.

President Trump expressed confidence that both sides could secure mutually beneficial terms, noting optimism for “common ground,” Fox reported.

Trump initially said he would cut tariff rates from 20% to 10% following Xi’s fentanyl pledge. However, a senior U.S. official later clarified that the updated tariff range would instead remain between 45% and 47%, reflecting the administration’s continued hardline posture on trade enforcement.

“I believe he’s going to work very hard to stop the death that’s coming in,” Trump said of Xi’s commitment to combat fentanyl smuggling — a crisis that has devastated American communities.

The two leaders also reached a one-year suspension of China’s expected export controls on rare earth minerals, vital to U.S. defense and manufacturing sectors. A senior official confirmed the terms will be reviewed again next year for renewal.

Trump additionally noted that China would open discussions with Nvidia regarding increased semiconductor purchases, though not involving the company’s most advanced processors.

The meeting lasted roughly one hour and forty minutes and concluded with a brief photo-op. Observers noted Xi appeared noticeably uneasy beside Trump’s commanding presence.

As the leaders exchanged parting remarks, Trump reflected positively on the relationship:

“It’s an honor to be with a friend of mine,” he said, adding that while some matters remain unresolved, “I think we’ve already agreed to a lot of things.”

Xi responded warmly, saying: “It feels very warm seeing you again because it’s been many years.” He added that while friction between great powers is inevitable, the U.S. and China “can still find ways to thrive side by side.”

Aboard Air Force One, Trump reiterated that Beijing’s cooperation on fentanyl was a driving factor in the tariff adjustments. “The relationship with China is very good,” he said.

In a later Truth Social post, he expanded:

“I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.”

He continued:
“Additionally, China has agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely… They will help us end the Fentanyl Crisis. China also agreed that they will begin the process of purchasing American Energy.”