In a move that marks a major shift in global trade dynamics, US President Donald Trump announced that tariffs on Chinese goods will be reduced from 57% to 47%. The decision follows his first face-to-face meeting with Chinese President Xi Jinping since 2019 — a discussion Trump described as “amazing”.
The leaders met in Busan, South Korea during the Asia-Pacific Economic Cooperation (APEC) summit. According to Trump, the agreement includes China resuming large-scale US soybean purchases, maintaining rare-earth mineral exports to the United States, and clamping down on the illegal trade of fentanyl.
The announcement came as Trump departed Busan aboard Air Force One. Global markets reacted instantly — Asian and European futures fluctuated, China’s Shanghai Composite eased from a decade-high rally, and US soybean futures slipped as traders assessed the outcome.
The talks capped Trump’s whirlwind diplomatic tour across Asia, where he also celebrated trade progress with South Korea, Japan, and Southeast Asian partners. For weeks, markets had priced in optimism, fueled by speculation that the world’s two largest economies were inching toward easing tensions that have disrupted global supply chains and investor confidence.
While this development signals a positive step, trade experts caution that strategic rivalry between the US and China remains. Both nations continue to assert their influence on economic and geopolitical fronts, leaving uncertainty over how long this period of reduced trade tension might last.
