The United States and China have struck a fragile truce in their long-running trade war, with President Donald Trump announcing tariff reductions in exchange for renewed Chinese cooperation on fentanyl control, agricultural trade, and rare earths supply.
Speaking to reporters after face-to-face talks with President Xi Jinping in Busan, South Korea, Trump hailed the meeting as “amazing” and rated the talks “12 out of 10,” their first in five years.
Under the agreement, Washington will trim tariffs on Chinese imports to 47% from 57%, largely by halving levies tied to fentanyl precursor chemicals. In return, Beijing pledged to intensify efforts to stop the export of the deadly synthetic opioid responsible for the majority of U.S. overdose deaths and resume large-scale purchases of American soybeans.
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China will also pause newly announced export restrictions on rare earth minerals for one year, easing global concerns over supplies of critical materials used in defense technology, electric vehicles, and aircraft.
Analysts see the move as a crucial concession, given Beijing’s leverage in the global rare-earth supply chain.
Beijing additionally signaled willingness to work toward a resolution on TikTok’s ownership dispute and expand agricultural trade. Trump, meanwhile, hinted at a major U.S. energy deal tied to a proposed $44 billion LNG pipeline in Alaska.
Markets greeted the deal with caution. Asian indices swung between gains and losses, while U.S. soybean futures weakened a contrast to Trump’s exuberance. “The response from markets has been cautious,” said Besa Deda, chief economist at advisory firm William Buck in Sydney.
Despite the thaw, key disputes remain unresolved. Analysts warn the truce may prove temporary, with sensitive issues such as Taiwan, advanced chip exports, and strategic technological dominance left untouched. Trump confirmed that Nvidia’s advanced AI chips and Taiwan were not discussed.
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The talks, held on the sidelines of the APEC summit, lasted over 90 minutes. Xi framed the meeting as a normal phase in great-power competition, saying China’s development “is not incompatible” with Trump’s “Make America Great Again” agenda.
In a surprise move before the talks, Trump authorized the U.S. military to resume nuclear weapons testing after more than three decades, citing expanding nuclear capabilities in Russia and China a decision that drew immediate concern from Beijing.
Both sides expressed hope for continued dialogue, with Trump expected to visit China in April before hosting Xi in the U.S. later in the year. For now, the uneasy truce resets relations to pre-April levels, but the fundamental tensions of a geopolitical and economic rivalry remain firmly intact.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
