Trump and Xi Announce Economic Truce to Rebalance Global Trade
Misr Mubasher – October 30, 2025
U.S. President Donald Trump and Chinese President Xi Jinping announced a new economic truce aimed at restoring balance to global trade during their summit on Thursday in Busan, South Korea, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC 2025) forum.
The meeting, which took place at Gimhae Air Base, lasted about two hours. Trump described the talks as “remarkable,” adding that the coming period would bring “greater understanding and more balanced interests” between Washington and Beijing.
Tariff Cuts and Resumption of Trade
Trump said that the United States will cut tariffs on Chinese goods from 20% to 10% under a preliminary agreement intended to ease the long-running trade war.
China, for its part, announced the resumption of U.S. soybean imports and pledged to take “strong measures” to curb the smuggling of chemicals used in producing fentanyl into the United States.
The two sides also agreed to delay restrictions on the export of rare earth metals, a key component in high-tech industries — a move seen as an effort to reassure global markets.
A Summit That Rekindles Dialogue Between the Two Giants
Both leaders agreed to hold reciprocal visits in 2026, starting with an official trip by Trump to Beijing in April, followed by a visit by Xi to Washington.
Analysts described the meeting as more of a tactical understanding than a full reset of relations, but one that opens the door to a period of relative trade calm after years of escalation.
Despite the positive tone, the talks did not address sensitive issues such as Taiwan or U.S. restrictions on advanced AI chips, underscoring the continued strategic rifts between the two powers.
Global Economic Impact
Observers expect the truce to help ease tensions in international markets and restore confidence in global supply chains and cross-border trade — particularly following recent declines in energy prices and the rise of Asian stock markets after news of the meeting.
