Trump and Xi Ease Trade Tensions with Tariff Cuts and New Farm Deals

President Donald TRUMP and Chinese President Xi Jinping held their first face-to-face meeting in six years in Busan, South Korea, yielding progress on trade and economic issues. Trump described the talks as "an amazing meeting" that exceeded expectations.

The U.S. agreed to reduce tariffs on certain Chinese goods, including a halving of duties on fentanyl-related products to 10%. China pledged stricter controls on precursor chemical exports. The MOVE lowers America's average tariff rate on Chinese imports from 57% to 47%.

On strategic materials, China will delay rare earth export restrictions for one year, providing relief for U.S. manufacturers of electric vehicles and medical equipment. Trade representative Jamieson Greer confirmed the removal of this critical "roadblock," though analysts anticipate some Chinese controls will remain.

The detente has already revived Chinese purchases of U.S. agricultural products, particularly soybeans, marking tangible progress in the protracted trade dispute between the world's two largest economies.