'Donald Trump-Xi Jinping Meeting: Trump Announces To Cut Tariffs; Says US-China Disputes 'Settled

In a significant development, U.S. President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, on October 30, 2025. The meeting took place during the Asia Pacific Economic Cooperation (APEC) summit. Both leaders engaged in discussions aimed at resolving their ongoing trade war, which has had global economic implications.

During their talks, President Trump announced a reduction in fentanyl-related tariffs on China to 10%. This decision followed discussions with Xi Jinping and marked a step towards easing tensions between the two nations. Trump expressed optimism about exchanging views with Xi on crucial bilateral issues.

Trade War Resolution

The trade dispute between the United States and China has been a source of tension for months. However, President Trump declared that the conflict had been "settled." This announcement came after both leaders reached a basic consensus on a trade deal. Xi Jinping assured Trump that China's development aligns with Trump's vision of "Making America Great Again."

Earlier this month, tensions escalated when Trump imposed additional levies of 100% on Chinese exports to the U.S. He also introduced new export controls on critical software by November 1 as retaliation against China's restrictions on rare earth exports. These measures heightened the urgency for dialogue between the two countries.

Positive Outlook from Leaders

Xi Jinping expressed confidence in maintaining a "fantastic relationship" with the United States for an extended period. He emphasised that while differences exist, both countries should strive to be "partners and friends." Xi highlighted the importance of joint responsibility as major nations to achieve substantial outcomes for their citizens and the world.

The meeting lasted approximately an hour and 40 minutes, according to Chinese state broadcaster CCTV. Following the discussions, President Trump departed South Korea aboard Air Force One. The meeting was seen as an opportunity to stabilise relations after months of turmoil over trade issues.

Investigating Trade Compliance

Amid these developments, U.S. officials initiated an investigation into China's compliance with a 2020 trade agreement described by Trump as "an incredible breakthrough." The inquiry aims to assess whether China fulfilled its commitments under the pact. This move could potentially lead to new sanctions if non-compliance is found.

Taiwan's Foreign Minister Lin Chia-lung expressed confidence in U.S.-Taiwan relations ahead of the Trump-Xi meeting. Concerns arose in Taipei about potential compromises involving Taiwan's interests during discussions between Trump and Xi at APEC.

Market Reactions

The announcement of tariff reductions led to positive reactions in global markets, which saw gains ranging from 2% to 3.8%. The temporary lowering of tariffs by both countries provided relief amid a tense global trade environment.

The meeting underscored mutual recognition that neither side wants to risk destabilising the world economy further. In recent days, U.S. officials indicated that Trump might not impose an additional 100% import tax on Chinese goods as previously threatened.

As part of efforts to ease tensions, China signalled willingness to relax export controls on rare earths and purchase American soybeans. On his way to South Korea aboard Air Force One, Trump mentioned potential tariff reductions related to China's role in fentanyl production.

This high-level engagement between the U.S. and China marks a pivotal moment in addressing trade disputes and fostering cooperation between two major global economies.