After the “amazing meeting” with Chinese president Xi Jinping in South Korea, US President Donald Trump said on Thursday that he will cut fentanyl tariffs on China from 20 per cent to 10 per cent.  Speaking to reporters aboard Air Force One, Trump announced his decision to cut the tariffs down to 10 per cent and said, “I believe he’s going to work very hard to stop the death that’s coming in.”

The U.S. government imposed a 20% tariff on Chinese imports as a response to Beijing’s alleged failure to stop shipments of chemicals used in the production of the powerful opioid Fentanyl entering the United States.

“Xi a very tough Negotiator”- Donald Trump

Trump-Xi meet in Busan: The two leaders greeted each other with a handshake on a red carpet lined with the US and China flags, before beginning discussions largely focused on trade and economic relations. Trump described Xi as a “very tough negotiator,” indicating that their dialogue would centre on long-standing economic disputes.
The meeting took place a day before the 2025 APEC Summit, which is set to be held in Gyeongju from October 31 to November 1. Global attention has been on whether Washington and Beijing can ease tensions that have strained bilateral ties in recent months.

Beijing reportedly showed readiness to relax restrictions on rare earth exports

Officials from both countries said the talks provided an opportunity to stabilise relations amid ongoing trade friction. Trump’s tariff measures and China’s restrictions on rare earth exports have contributed to global economic uncertainty, prompting both sides to seek common ground.

Beijing, meanwhile, reportedly showed readiness to relax restrictions on rare earth exports and resume soybean imports from the United States. Before the talks, Trump posted on Truth Social, referring to the meeting as the “G2,” highlighting the economic strength of the United States and China relative to other blocs such as the G7 and G20.