US, China Agree to Ease Tensions, Suspend Tariffs

In Busan, South Korea, Donald Trump and Chinese President Xi Jinping concluded a meeting with several agreements designed to reduce trade frictions and strengthen diplomatic relations. Trump announced that China will delay its restrictions on rare earth exports for a year, while the United States will immediately reduce tariffs on Chinese goods linked to fentanyl trade from 20% to 10%. He also confirmed plans to visit China in April and said Beijing will resume large soybean purchases. 

Beijing confirmed the deals, adding that both nations agreed to extend for one year the suspension of reciprocal tariffs and retaliation measures. Washington also paused the expansion of its export control list targeting Chinese companies, a policy that had previously triggered strong pushback from China.

The leaders also reinstated the framework for TikTok’s sale in the United States and agreed to cooperate on fentanyl control, agricultural trade, and corporate disputes.

The 100-minute meeting, described by both as positive and productive, reflected a shift toward stability after years of confrontation. Xi called for avoiding “cycles of retaliation” and praised Trump’s recent diplomatic efforts in Gaza and Southeast Asia, while Trump emphasized his desire for a “fantastic long-term relationship” with China.