US, China Seal One-Year Trade Deal as Trump Slashes Tariffs to 47%
President Trump and President Xi Jinping finalize a breakthrough agreement at the APEC Summit in Busan, marking a major step toward easing global trade tensions.
Busan [South Korea], Oct 30: In a significant diplomatic breakthrough, US President Donald Trump on Thursday announced that Washington has reached a landmark one year trade pact with China, reducing tariffs on Chinese imports from 57% to 47%. The announcement followed his highly anticipated meeting with Chinese President Xi Jinping on the sidelines of the APEC Summit in Busan, South Korea.
Speaking to reporters aboard Air Force One, Trump declared, “We have a deal,” confirming that the agreement would be renewed and renegotiated annually. “Every year we’ll renegotiate the deal, but I think it will go on for a long time, long beyond the year,” he added.
The US President said the 10% tariff reduction was in recognition of China’s “strong action” on the fentanyl crisis, a key issue in bilateral talks. “It was 57, now it’s 47. We reduced it by 10% because I believe they are taking strong action. We’ve already seen it,” Trump noted.
Trump also announced that the long-standing dispute over rare earth minerals had been settled, describing the outcome as a victory “for the world.”
Prior to his return to Washington, the White House hailed Trump’s Asia tour as a “remarkable trip” marked by major diplomatic and economic achievements. According to a statement, the President secured billions in new investments, facilitated the end of a regional conflict, signed multiple trade and mineral agreements, and held a “historic meeting” with Xi Jinping.
The Busan meeting between Trump and Xi was widely seen as the highlight of the APEC Summit, offering both nations a chance to reset relations after months of escalating tensions over tariffs, technology controls, and resource exports.
As the talks concluded, the two leaders were seen shaking hands, signaling a thaw in the trade standoff and capping off a week of intense diplomacy that reaffirmed Washington’s efforts to strengthen alliances and advance US economic interests in the Indo-Pacific region.
