U.S. President Donald Trump and Chinese President Xi Jinping made history on 30 October 2025 when they jointly declared a breakthrough in trade relations, unveiling an agreement that includes tariff relief combined with China relaxing its restrictions on rare-earth materials. This landmark meeting took place during APEC Summit in Busan, South Korea and marks a shift in long-running U.S.-China tensions. Al Jazeera +2 and Euratvix both provided coverage on this eventful meeting, Al Jazeera +2 and Euratvix both provided coverage of this event at length before their respective announcements of breakthrough agreements on tariff reliefs combined with China relaxing restrictions on strategic rare-earth materials restrictions that had long held back on strategic rare earth materials reintroduced. The news of this agreement marked shift in longstanding U.S.-China tensions, signalling an end of their protracted U.S.-China trade conflicts. Al Jazeera +2, Euractiv +2.
Key Elements of the Deal
President Trump described his meeting with Chinese leader Xi as “amazing”, rating it 12 out of 10, and announced that immediately lower tariffs on Chinese goods from 57 per cent to 47 per cent will be implemented by his country. Its Daily Sabah/ Euractiv.
On China’s side, Beijing agreed to temporarily postpone new export restrictions on certain rare earth elements that are essential to U.S. industries ranging from electronics to defence. TIME +2 Euractiv
China pledged to resume purchases of U.S. soybeans, while intensifying efforts to curb precursor chemicals used for fentanyl production. Al Jazeera reported this pledge.
Rare Earth Elements Matter
Rare-earth elements (REEs) are essential in manufacturing products ranging from smartphones and electric vehicles to fighter jets and missiles, giving China significant strategic leverage. Al Jazeera explored this topic.
China appears to have reduced one of its key bargaining chips by agreeing to temporarily suspend REE export controls, and this move by President Trump appears to be recognition of that leverage. Securing access to REEs while simultaneously easing tariffs offers twofold gains: stabilising U.S. supply chains while strengthening relations with its biggest trading partner.

Trade War Truce or Start of a New Phase?

Though both leaders praised the agreement as a major victory, analysts stress that it should be seen more as a temporary peace deal rather than a final resolution of tensions between their countries. Al Jazeera reported that any agreement reached may still be subject to renewal over time and renegotiations.
Even after this tariff reduction, China still imposed an excessively high 47 per cent rate, leaving their commitment vague in commitment; some economists see the deal more as symbolic rather than substantive at this stage. Al Jazeera offers more details.
Impact Analysis on Global Markets and Supply Chains

This announcement sent waves of relief through global markets and corporate circles, providing relief to firms caught between tariff increases and export curbs. Particularly welcome was its impact on rare earths and magnet industries which depend heavily on Chinese restrictions for production.
However, the potential longer-term effects go beyond immediate supply chain relief. The deal may signal a recalibration in U.S.-China relations across multiple areas–trade, technology transfer, industrial policy and strategic minerals. By linking tariffs and rare earth access agreements together, Washington appears to achieve both economic and security goals simultaneously.

What Are My Next Steps While Trump struck an optimistic note during their conversation, many details remain vague and remain a work in progress. Trump indicated a formal deal could be inked “pretty soon”, as well as indicated his intention of visiting China in April 2026 and welcomed President Xi for a future trip to the U.S.
TIME will keep an eye on this process moving forward.
In the coming months, both countries will put their agreement through rigorous tests as each pursues differing strategic interests. Will China fully open its rare-earth exports and resume large-scale U.S. agricultural purchases? Will tariffs decline further or remain elevated? This framework offers only temporary respite in their larger economic rivalry between these two economic powerhouses.

Trump-Xi’s meeting in Busan may have provided an important strategic reset, with tariffs reduced and rare earth barriers eased, as well as dialogue resuming. Whether this moment marks lasting detente or just temporary cessation in economic confrontation remains to be seen; we will watch closely.