Trump, Xi Hold ‘Constructive’ Talks in Seoul; Tariffs Reduced, Trade Deal in Sight

US President Donald Trump and Chinese President Xi Jinping held high-stakes talks in South Korea on Thursday, marking a potential turning point in months of escalating trade tensions between the world’s two largest economies.

Both leaders described the discussions as “constructive,” focusing on tariff reductions, agricultural trade, and cooperation to curb fentanyl exports — key issues that have strained ties since early 2025.

Tariff relief and trade progress
President Trump announced that overall tariffs on Chinese goods would be reduced from 57% to 47%, while fentanyl-related tariffs would be cut to 10%. “We have not too many major stumbling blocks. We have a deal now… I think the deal will go on for a long time,” Trump told reporters.

Fentanyl and rare earths agreement
Trump said China had agreed to cooperate on curbing fentanyl exports, calling the discussions “very positive.” He also confirmed a one-year pact on rare earth material supplies, subject to annual renewal, describing it as “settled — and that’s for the world.”

Agricultural cooperation resumes
In a key breakthrough, China will immediately resume large-scale purchases of American soybeans and other farm products, reversing trade restrictions from earlier tariff battles. Trump praised Xi’s decision as a “very nice gesture” and a sign of goodwill.

Looking ahead
The Seoul meeting, which Trump rated “a 12 on a scale of 1 to 10,” could mark a diplomatic reset between Washington and Beijing. The US President also announced plans to visit China in April 2026 to further strengthen the newly revived trade ties.