At their summit in Busan, South Korea, the President announced that the United States will cut tariffs on Chinese imports by 10 percentage points, bringing the overall tariff rate on Chinese goods down to roughly 47%, effective immediately. In return, China pledged to take “very strong action” on the export of chemicals used to manufacture fentanyl.
According to The Wall Street Journal, the agreement reflects a limited but meaningful step toward easing trade tensions between the two nations.
On the Chinese side, Beijing agreed to relax controls on exports of processed rare-earth minerals for one year. The move follows a period of strict export curbs that disrupted supply chains for industries dependent on these materials — including electronics and LED manufacturing. Trump described the shift as “a major win for American business and global manufacturing.”
He also announced that China has committed to purchase large amounts of U.S. soybeans, providing relief to American farmers who have struggled with market uncertainty during recent trade disputes.
While the tariff reduction is notable, the numbers are more modest than some earlier reports suggested. The deal does not mark a full rollback of U.S. trade leverage but rather a targeted adjustment tied to China’s commitments on fentanyl-related chemicals, rare-earth exports, and agricultural imports.
Go Deeper:
CNBC: Full List of U.S. Tariffs