In a landmark summit aimed at defusing months of escalating tension, US President Donald Trump and Chinese leader Xi Jinping reached a series of broad agreements on trade, tariffs, and critical mineral exports.
The leaders also announced a commitment to future in-person talks, signaling a significant reset in the volatile relationship between the world’s two largest economies.
Speaking to reporters aboard Air Force One after concluding the talks in South Korea, Trump hailed the meeting as “amazing” and said “an outstanding group of decisions” were made.
The agreements, which Trump claimed covered “almost everything,” represent a major de-escalation and chart a new course for the rival superpowers.
A shift in tone after months of tension
The summit, the first face-to-face meeting between the two leaders in six years, began with warm and conciliatory public remarks. Held at an airbase in the coastal city of Busan, the tone was a marked departure from the recent hostility.
Trump praised Xi as the “great leader of a great country,” adding that he thought the two “were going to have a fantastic relationship for a long period of time.”
President Xi reciprocated the sentiment, saying it was a “great pleasure” to see Trump.
“We do not always see eye to eye with each other, and it is normal for the two leading economies of the world to have frictions now and then … you and I at the helm of China-US relations should stay the right course,” Xi told reporters after the meeting, emphasising that the two nations could “prosper together.”
Broad agreements on tariffs, fentanyl, and critical minerals
The core of the summit’s success lies in a series of concrete economic concessions.
Trump announced a significant reduction in US tariffs on Chinese goods and secured commitments from Beijing on key US priorities.
- Tariff reductions: The overall US tariff rate on China will be lowered from 57% to 47%. In a specific move, Trump said he dropped tariffs related to fentanyl from 20% to 10%.
- Fentanyl and soy beans: “On fentanyl, we agreed that he was going to work very hard to stop the flow,” Trump confirmed. He also announced that China will resume purchasing US Soy Beans immediately, a major boon for American farmers.
- Rare earths: Critically, Trump said the dispute over China’s control of rare earth mineral exports has been resolved, easing global economic anxiety. “All of the rare earth issue is settled, and that’s for the world,” Trump told reporters. “There’s no roadblock from China anymore.”
Leaders announce reciprocal visits for 2026
Underscoring the diplomatic breakthrough, President Trump announced that the leaders have committed to continuing their dialogue.
Trump said he plans to visit China in April 2026, and that President Xi will travel to the United States “sometime after that,” with potential destinations including Washington D.C. or Palm Beach, Florida.
These planned visits signal a mutual intent to stabilize and maintain the relationship.
Tech disputes remain as Taiwan is left off the agenda
Despite the broad success, the summit did not resolve all issues.
The complex dispute over technology, particularly US export controls on advanced semiconductors, remains a point of friction.
Trump confirmed he discussed Nvidia’s chip sales to China but indicated no breakthrough was reached, specifying that the talks did not involve Nvidia’s most advanced Blackwell AI chips.
He did, however, note that Beijing will now speak directly with Nvidia’s CEO Jensen Huang, with the US acting as “sort of a referee.”
Notably, the highly sensitive topic of Taiwan’s sovereignty was entirely avoided.
“Taiwan never came up in the discussions,” Trump stated, a significant omission that likely helped the leaders focus on achievable economic goals.
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