Trump, Xi Reach Trade Breakthrough: U.S. to Cut Tariffs on China

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UPDATED :
Kolkata, India | Oct 30, 2025, 15:31 IST
3 Min read
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Busan, Thursday 30 October 2025 — Trump Announces Tariff Cuts After Summit with Xi

In a major turn in U.S.-China trade relations, President Donald Trump announced on Thursday that the United States will reduce tariffs on Chinese imports following a “highly successful” meeting with President Xi Jinping in Busan, South Korea.

According to official statements aboard Air Force One, Mr. Trump confirmed that tariffs on certain Chinese goods — initially imposed as punitive measures earlier this year — will be cut from 20% to 10%, reducing the overall tariff rate on China from 57% to 47%. The move marks a significant de-escalation in the ongoing trade tensions between the two global powers.

Confirmed Developments

Mr. Trump stated that Beijing has agreed to resume rare earth exports and to restart large-scale purchases of American soybeans. “I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12,” the President told reporters.

He added that the two leaders also discussed advanced computer chip exports, indicating that U.S. chipmaker Nvidia would engage in direct talks with Chinese officials in the coming weeks. Mr. Trump hinted that a formal trade agreement could be signed “pretty soon,” suggesting that “there are not too many major stumbling blocks.”

Broader Context and Remaining Tensions

Despite the upbeat tone, both sides acknowledged that underlying differences remain. The U.S. and China continue to compete for dominance in emerging technologies such as artificial intelligence and semiconductor manufacturing, while also diverging on key geopolitical issues, including the war in Ukraine.

President Xi, speaking through a translator at the start of the talks, said, “Given our different national conditions, we do not always see eye to eye with each other. It is normal for the two leading economies of the world to have frictions now and then.”

China’s official news agency, Xinhua, later reported that Mr. Xi described some differences as “inevitable,” underscoring a cautious approach to the post-meeting optimism expressed by Washington. Beijing has not yet issued a formal statement outlining its version of the meeting’s outcomes.

Next Steps and Future Engagements

Mr. Trump announced plans to visit China in April 2026, with President Xi expected to travel to the United States later in the year. Both sides are reportedly working on frameworks to stabilize trade relations and prevent further disruptions to the global economy.

The announcement follows months of heightened tariff exchanges and supply-chain uncertainty, with both governments recognizing the mutual economic risks of prolonged confrontation.

Developing Situation

While markets are expected to react positively to the tariff rollback, analysts caution that details of the agreement remain preliminary, and implementation timelines are not yet confirmed.

This is a developing story. Further updates will follow as official documents and joint statements are released.

Disclaimer: This breaking news report is based on verified information available at the time of publication. Details may be updated as more official confirmations emerge. The report does not intend to defame, criticize, or misrepresent any individual or organization.

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