U.S. President Donald Trump and Chinese President Xi Jinping signaled a major thaw in trade relations during a high-profile meeting in Busan, South Korea, marking their first in-person talks since 2019. Both leaders expressed optimism about easing the economic tensions that have defined U.S.-China relations in recent years.

Speaking after their nearly two-hour discussion, Trump announced a significant reduction in tariffs: duties on Chinese goods will drop from 57% to 47%, while tariffs on fentanyl — a key issue in U.S.-China talks — will be halved from 20% to 10%. He described the meeting as “amazing,” rating it “a twelve out of ten.”

The two leaders met on the sidelines of the APEC summit, concluding Trump’s rapid Asian tour, which included stops in Japan, South Korea, and several Southeast Asian countries. “We’re going to have a very successful meeting,” Trump told reporters beforehand, calling Xi “a very tough negotiator.”

Xi, for his part, struck a conciliatory tone, noting that “it’s natural for the world’s two leading economies to have occasional frictions.” He added that negotiators had reached a “fundamental consensus” on key issues and said he was ready to continue building “solid foundations” for future cooperation.

trump and xi

U.S. President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, October 30, 2025. REUTERS/Evelyn Hockstein

During the meeting, Trump and Xi also discussed the war in Ukraine “at length.” Trump told reporters aboard Air Force One that both sides agreed to work toward ending the conflict. “Sometimes you have to let the sides fight,” he said, “but [Xi] will help, and we’ll work together on Ukraine.”

The U.S. president said he did not discuss China’s purchase of Russian oil, though Washington recently imposed new sanctions on major Russian energy firms, affecting Chinese and Indian imports.

A New Chapter in U.S.-China Trade

Following the talks, Trump announced plans to visit Beijing in April, with Xi expected to visit the United States later in the year. “He might come to Palm Beach or Washington,” Trump said, hinting at future high-level diplomacy.

trump and xi

Air Force One, with U.S. President Donald Trump on board, departs for the U.S. from Gimhae International Airport, after a bilateral meeting with Chinese President Xi Jinping on trade tensions and bilateral relations, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit, in Busan, South Korea, October 30, 2025. REUTERS/Kim Soo-hyeon

According to U.S. Treasury Secretary Scott Bessent, Beijing is expected to delay export controls on rare earth minerals for one year and resume purchases of American soybeans — vital for U.S. farmers — as part of a broader trade framework under negotiation. China reportedly bought U.S. soybean cargoes this week for the first time in months, according to Reuters.

Markets reacted positively to the developments. Chinese stocks hit decade highs, the yuan strengthened against the dollar, and major global exchanges from Wall Street to Tokyo surged amid renewed investor confidence in a potential trade truce.

Cautious Optimism

While both sides hailed the meeting as a breakthrough, analysts caution that deep strategic and economic rivalries remain. The trade war reignited earlier this month after China expanded export restrictions on rare earth elements — materials essential for high-tech industries — prompting Trump to threaten additional 100% tariffs on Chinese exports.

trump and xi

U.S. President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting at Gimhae International Airport, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, October 30, 2025. REUTERS/Evelyn Hockstein

Even so, Trump appeared upbeat. “President Xi is a great leader,” he said. “This was a fantastic meeting, and I believe we’re moving in the right direction.”