Trump and Xi Reach One-Year Trade Truce in South Korea

President Donald Trump and Chinese President Xi Jinping reached a one-year tactical trade truce during a summit at the Gimhae Air Base in Busan, South Korea, on October 30, 2025. The agreement aims to de-escalate a severe trade war that had seen U.S. tariffs on Chinese imports reach 145% and Chinese levies hit 125%. Under the terms, the U.S. reduced its combined import tariff rate on Chinese goods from 57% to 47%, specifically halving fentanyl-related tariffs from 20% to 10% in exchange for Beijing's commitment to curb the export of precursor chemicals.

China agreed to resume large-scale purchases of U.S. agricultural products, committing to buy 12 million metric tons of soybeans by January 2026 and at least 25 million metric tons annually through 2028. Additionally, Beijing agreed to a one-year suspension of export controls on critical rare earth minerals and magnets, including gallium, germanium, antimony, and graphite. Both nations also agreed to a reciprocal one-year pause on maritime port fees and investigations into each other's shipbuilding industries.

Despite the truce, strategic tensions remain. The U.S. continues to restrict the export of advanced AI chips, specifically Nvidia's Blackwell series, and the leaders avoided discussing Taiwan. Minutes before the summit, Trump announced the U.S. would resume nuclear weapons testing to maintain parity with Russia and China. While Trump described the meeting as a "roaring success," analysts characterize the deal as a temporary freeze rather than a structural resolution, noting that China continues to pursue long-term tech self-sufficiency.