Trump Hammers Out Major Deal With Xi to Slash Tariffs, Boost U.S. Exports [WATCH]

President Donald Trump met Thursday with Chinese President Xi Jinping in Busan, South Korea, marking the final stop of his weeklong Asia trip that included visits to Malaysia and Japan.

The meeting came just hours after Trump signaled online that changes to U.S. defense and trade policy could soon be announced.

The summit focused on reducing tensions between Washington and Beijing following months of escalating trade and security disputes.

Since returning to the White House in January, President Trump has imposed major tariffs on Chinese imports, prompting Beijing to respond by tightening restrictions on rare earth exports—key materials used in advanced manufacturing and defense systems.

Ahead of Thursday’s meeting, senior aides from both sides confirmed that the discussions would center on tariffs, high-tech exports, and global supply chain competition—issues that have long defined the U.S.-China relationship.

After roughly 100 minutes of private talks, Trump described the meeting as productive, saying he and Xi reached “an outstanding group of decisions” on several key areas.

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“We had an amazing meeting,” Trump told reporters.

“I believe we’ve already agreed to a lot of things.”

The president announced that Xi agreed to immediately begin purchasing U.S. soybeans and other agricultural products, a move aimed at reducing trade imbalances and strengthening American farmers’ exports.

Trump also said China had committed to working “very hard” to stop the flow of fentanyl into the United States, a major focus of his administration’s anti-drug efforts.

“I believe he’s going to work very hard to stop the death that’s coming in,” Trump said.

In exchange, Trump said he would reduce U.S. tariffs on Chinese goods from 20 percent to 10 percent.

The agreement, he explained, was structured as a one-year framework to be reviewed and renewed annually.

“We have a deal,” he said.

“Every year we’ll renegotiate the deal, but I think it’ll go on for a long time.”

The two sides also reached an understanding on rare earth exports, with China agreeing to pause planned export controls for one year.

A senior administration official said both leaders intend to revisit the arrangement in 2026, with the option to extend it if both sides remain in compliance.

President Trump also confirmed that the discussions included semiconductor production and export issues.

He said China would open talks with U.S. technology company Nvidia about purchasing additional chips, though the newest generation of advanced processors was not part of the talks.

Another key outcome of the meeting was an agreement for reciprocal visits between the two leaders.

Trump announced plans to travel to China in April, with Xi expected to visit the United States later in the year.

The meeting concluded with a brief photo opportunity before both leaders departed.

As Trump waved to reporters and boarded Air Force One, he appeared to exchange final remarks with Xi before shaking hands.

“It’s an honor to be with a friend of mine,” Trump said as they met earlier in the day.

Xi responded that “it feels very warm seeing you again because it’s been many years,” adding that while disagreements between major powers are inevitable, “the U.S. and China can still find ways to thrive side by side.”

Earlier, while traveling to South Korea, Trump told reporters aboard Air Force One that he was considering tariff reductions as a gesture of goodwill toward Beijing’s cooperation on fentanyl enforcement.

“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” he said. “The relationship with China is very good.”

The meeting in Busan marks the most significant engagement between the two nations since Trump’s return to office.

Both leaders left open the possibility of broader trade and security negotiations later in 2025. Neither government released additional details about the private session.