Trump cuts China tariffs by 10%, calls it a 'gesture of good faith' after talks with Xi
The tariff reduction, from 57% to 47%, marks the first major rollback since Washington imposed steep duties on Chinese goods as part of its “America First” trade policy
- Oct 30, 2025,
- Updated Oct 30, 2025 11:13 AM IST
In a move signalling a potential thaw in US–China trade tensions, President Donald Trump on Thursday announced a 10% reduction in tariffs on Chinese imports, calling it a “gesture of good faith” following what he described as an “amazing” meeting with Chinese President Xi Jinping in Busan.
Trump said the decision came after more than two hours of closed-door talks with Xi, where both sides reached a series of economic and trade understandings. “China will immediately start buying soybeans again. That’s a big win for our farmers,” Trump told reporters. “The trade relationship is going to look very different now.”
Tariff rollback aims to reset strained trade ties
The tariff reduction, from 57% to 47%, marks the first major rollback since Washington imposed steep duties on Chinese goods as part of its “America First” trade policy. Trump framed the move as part of a broader effort to rebalance ties and rebuild economic trust between the world’s two largest economies.
US officials travelling with the president confirmed that the cut is expected to take effect immediately and will cover a broad range of consumer and industrial products. Economists see the gesture as a signal that both sides are seeking stability after years of tariff escalations that rattled global markets.
Rare earth breakthrough and agricultural reset
Alongside the tariff relief, Trump said the two countries had reached a breakthrough on rare earth exports, ending months of uncertainty over supplies critical to high-tech manufacturing and defence industries. “All the rare earth issue has been settled — no more roadblocks,” he declared, adding that the agreement will ensure continued access to essential materials for U.S. industries.
China also agreed to resume large-scale purchases of American soybeans, a symbolic win for Trump’s farm belt constituency that had been hit hard by earlier trade restrictions.
Fentanyl cooperation and diplomatic exchange
The US president said Xi had also committed to intensifying China’s efforts to curb fentanyl production, which Washington has long blamed for worsening the American opioid crisis.
As part of the renewed dialogue, Trump announced plans to visit China in April, while Xi is expected to make a return visit to the US later this year. In a striking omission, Trump noted that Taiwan “never came up” during their discussions, an unusual development given the issue’s prominence in bilateral relations.
In a move signalling a potential thaw in US–China trade tensions, President Donald Trump on Thursday announced a 10% reduction in tariffs on Chinese imports, calling it a “gesture of good faith” following what he described as an “amazing” meeting with Chinese President Xi Jinping in Busan.
Trump said the decision came after more than two hours of closed-door talks with Xi, where both sides reached a series of economic and trade understandings. “China will immediately start buying soybeans again. That’s a big win for our farmers,” Trump told reporters. “The trade relationship is going to look very different now.”
Tariff rollback aims to reset strained trade ties
The tariff reduction, from 57% to 47%, marks the first major rollback since Washington imposed steep duties on Chinese goods as part of its “America First” trade policy. Trump framed the move as part of a broader effort to rebalance ties and rebuild economic trust between the world’s two largest economies.
US officials travelling with the president confirmed that the cut is expected to take effect immediately and will cover a broad range of consumer and industrial products. Economists see the gesture as a signal that both sides are seeking stability after years of tariff escalations that rattled global markets.
Rare earth breakthrough and agricultural reset
Alongside the tariff relief, Trump said the two countries had reached a breakthrough on rare earth exports, ending months of uncertainty over supplies critical to high-tech manufacturing and defence industries. “All the rare earth issue has been settled — no more roadblocks,” he declared, adding that the agreement will ensure continued access to essential materials for U.S. industries.
China also agreed to resume large-scale purchases of American soybeans, a symbolic win for Trump’s farm belt constituency that had been hit hard by earlier trade restrictions.
Fentanyl cooperation and diplomatic exchange
The US president said Xi had also committed to intensifying China’s efforts to curb fentanyl production, which Washington has long blamed for worsening the American opioid crisis.
As part of the renewed dialogue, Trump announced plans to visit China in April, while Xi is expected to make a return visit to the US later this year. In a striking omission, Trump noted that Taiwan “never came up” during their discussions, an unusual development given the issue’s prominence in bilateral relations.