Introduction
On October 30, 2025, President Trump and President Xi met in Busan, South Korea and announced a targeted easing of U.S. tariffs on certain Chinese imports. The change centers on lowering the fentanyl-linked surcharge, paired with commitments from Beijing on precursor controls and near-term trade steps.
What Xi and Trump have agreed / what changed
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Fentanyl-linked tariff cut: The U.S. will reduce the fentanyl-related surcharge on imports from China 20% → 10%, because Trump believes China is “really taking strong action” [1]. Thereby the tariffs would be lowered from 57% to 47% [2].
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Fentanyl cooperation: China committed to stronger action to curb exports of precursor chemicals used to produce fentanyl [3].
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Agriculture purchases: Trump said China will resume buying U.S. soybeans in “tremendous amount” alongside other farm products, starting immediately [4]. From now to January 2026, China agreed to purchase 12 million metric tons of soybeans, and 25 million metric tons for the next three years [5].
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Rare-earths pause: Leaders indicated a one-year arrangement under which China would refrain from imposing new rare-earth export controls, with the possibility of renewal. [6]
What has not changed
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Broader tariff architecture remains: Aside from the fentanyl-linked tranche, the wider U.S. tariff framework on China (e.g., prior “reciprocal”/other duties) remains in place unless and until separately modified [7].
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Technology/strategic controls unresolved: The announcement did not address core issues like U.S. tech/export controls or other structural disputes; those frictions continue [8]. There is no mention of a “breakthrough of TikTok during this meeting; however, Beijing said afterwards that “it would continue to work resolve the issues” [9].
Why it matters (brief)
The steps amount to calibrated de-escalation: limited tariff relief in exchange for cooperation on fentanyl and short-run trade confidence measures (soybeans, rare earths). Businesses should expect continued compliance complexity because the broader tariff and regulatory environment remain largely intact.
DeHeng Law Offices will continue to monitor U.S.–China trade policy and related legal developments and will provide factual updates as new official information becomes available.
Cited
[1] [3] [6] Trump says US to cut fentanyl tariff to 10% after talks with China's Xi https://www.reuters.com/world/china/trump-says-nvidias-high-end-blackwell-chip-did-not-figure-talks-with-chinas-xi-2025-10-30/
[2] [8] Trump-Xi meeting: US president says rare earths deal and tariff cut agreed https://www.theguardian.com/us-news/2025/oct/30/trump-and-xi-meet-in-south-korea-for-crunch-talks-on-trade
[4] [9] Trump hails ‘amazing’ meeting with China's Xi but no formal trade deal agreed https://www.bbc.com/news/articles/crl25xl1gjpo
[5] [7] Trump cuts tariffs on China after meeting Xi in South Korea https://apnews.com/article/trump-xi-china-trade-war-4c19a752c97828246c08f60f0dc54c79
