(Yahoo! Finance) - President Trump and Chinese leader Xi Jinping finished a keenly watched 90-minute meeting to formalize a trade and tariff truce after months of chaos and confusion, putting on ice a trade war between the world's two largest economies.
As anticipated, the vast majority of the discussions focussed on Trump's sky-high tariffs on China alongside China's imposition of export controls on rare-earth metals.
The US and China agreed to a one-year truce in a bid to reduce escalating trade tensions, with both sides pausing tit-for-tat port fees on vessels linked to the other for 12 months. Xi also said China would stop export restrictions on rare earths materials for one year.
In a 15-minute Q&A, Trump addressed reporters prior to boarding Air Force One and leaving South Korea, calling the summit an "amazing meeting." Here are the main points raised:
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The US tariff on goods related to the production of fentanyl will drop from 20% to 10% with a promise China would work "very hard to stop the flow."
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Trump said overall tariffs on China will now be cut to 47% from 57%.
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Trump declared any concerns over rare earths to be "settled."
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The US will mediate talks between Beijing and Nvidia's (NVDA) CEO Jensen Huang over China's use of restricted chips.
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Trump said China would purchase more US energy as part of a wider trade truce, and hinted at an unspecified transaction involving Alaskan oil and gas.
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China will resume buying "tremendous amounts" of US soybeans "starting immediately," Trump said.
Despite questions about the truce's ultimate durability, the moment represents a milestone for the US and China after Trump amped up trade threats against China almost immediately upon returning to office, rattling markets and unnerving investors.
Here's what else to know on Trump's tariffs:
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Trump said the US and South Korea had reached a deal after months of negotiating on a framework agreement. Also, Trump and Japan's first female leader, Sanae Takaichi, signed deals relating to trade and rare earths.
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A spat over an ad featuring the late Ronald Reagan has grown into an international incident, with Trump threatening to raise tariffs on Canada by an additional 10%. Trump said he is stopping all negotiations with Canada.
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The US Senate passed a bill that aims to end Trump's 50% tariffs on Brazil, in a rare rebuke of the president from several members of his own party.
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The US and India are making progress on a trade deal which could see tariffs on New Delhi cut to 15%-16% from their current 50% level, according to a report.
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In early November, the US Supreme Court is set to hear a challenge to Trump's most sweeping tariffs — the "reciprocal" country-by-country duties that you can see in the graphic above. A ruling against the tariffs — which would be in line with lower-court decisions — could have significant ramifications for Trump's tariff strategy.
From fentanyl tariffs to port fees: A list of the agreements made by Trump and Xi
The highly-anticipated meeting between President Trump and Xi Jinping, which was wrapped up in around 90 minutes, covered various topics in the hopes of preventing any further trade tensions between the world's largest economies.
Here is a list of some of the issues discussed, the outcomes, and what it could mean for both sides:
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Fentanyl tariffs: The US tariff on goods related to the production of fentanyl will drop from 20% to 10% with a promise that China would work "very hard to stop the flow." This brought overall tariffs on China down to 47% from 57%.
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Rare earths: China paused plans for a dramatic expansion of its rare-earth export controls, offering relief to global buyers after a tumultuous year and handing major economies more time to counter Beijing’s grip on the industry.
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Port fees: The US and China have agreed to suspend tit-for-tat shipping levies on vessels linked to each other for one year, according to Beijing, de-escalating a dispute that has become a sticking point in their wider trade war.
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Soybeans: Trump said China will purchase “tremendous” amounts of American soybeans. He did not provide further details.
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Nvidia (NVDA) and Blackwell chips: Trump said he didn’t discuss approving sales of Nvidia's Blackwell chips to China, dampening speculation that Washington will allow exports of the powerful AI accelerators to the world’s largest semiconductor market. “We did discuss chips,” Trump told reporters aboard Air Force One. “They’re going to be talking to Nvidia and others about taking chips.”
October 30, 2025
