Trump's Game-Changing Agreement with China: Fentanyl Tariffs Cut and Rare Earths Deal Secured

Trump Announces Major Trade and Security Agreement with China Following Historic Meeting

October 30, 2025 — Busan, South Korea

The two largest economies move closer as President Donald Trump said on Thursday that the United States signed a new one-year deal with China. The U.S. and China agreed on a pact to secure rare earth elements and key minerals. This news came right after a meeting with Chinese President Xi Jinping in Busan, South Korea.

Key Highlights from the Announcement

Rare Earths Deal: Trump said the pact will keep rare earth minerals steady for tech and manufacturing. He calls it a one-year plan that may renew and change with each cycle.
Fentanyl Tariff Reduction: Trump said tariffs on fentanyl-linked imports from China will drop from 57% to 47%. The move works to stop the illegal spread of fentanyl, a strong synthetic drug linked to the U.S. overdose problem.
Agricultural Trade Resumption: China agreed to buy more American farm products such as soybeans. This step seeks to mend recent trade tensions.
Upcoming Visits: Trump said he will go to China in April 2026. Later, President Xi will come to the United States. The trips are set to boost further ties in trade and security.

The Meeting and Its Broader Context

The leaders met for 1 hour and 40 minutes. This was their first face-to-face talk in six years. Before they began, both leaders exchanged kind words. Trump called Xi an "old friend" with a strong bond. Xi noted that China’s growth plans would not clash with Trump’s goal to make America strong again.

These talks come as tensions rose during 2025. Beijing tightened export rules while Washington warned about stopping certain tech exports to China. They discussed topics like:

Tariffs and trade limits
Fentanyl import rules
Rare earth minerals and supply chains
Tech safety and TikTok’s ties to ByteDance

Signs of a Thawing Relationship

Even though many doubted change, Beijing bought U.S. soybeans. This act shows a sign of better ties. The new rare earth deal, the drop in fentanyl tariffs, and the restart of farm trade hint at a less rocky U.S.-China bond. Trump called the meeting “amazing” and said many plans were set, showing hope for more joint work.

Looking Ahead

The pact may shift global markets, tech fields, and security rules because rare earths matter in gadgets and defense. The lower tariffs on fentanyl-linked imports show a careful plan to fix hard shared issues in trade and public health.

With trips planned next year, Washington and Beijing show a clear wish to calm and balance their economic and security ties.

This is a developing story; updates will follow as more information becomes available.

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