US President Donald Trump has announced a 10 percentage point reduction in tariffs on Chinese goods following a summit with Chinese President Xi Jinping in South Korea, marking a major shift in trade relations between the world’s largest economies. The tariffs, previously at 57 percent, will now stand at 47 percent, with the move described by Trump as a gesture of good faith and a step to reset global trade ties. This is the most significant rollback since the ‘America First’ policy led to steep duties on Chinese imports.
The decision was finalised after closed-door talks in Busan, where Trump and Xi reached new trade understandings, including immediate Chinese commitments to resume large-scale purchases of US soybeans and farm goods. The tariff move also covers a broad spectrum of consumer and industrial products. President Trump highlighted the improved atmosphere, stating the two sides made substantial progress on economic cooperation, fentanyl exports, rare earths, and easing bilateral tensions. He also announced a separate, deeper tariff cut on fentanyl-linked goods, reducing them from 20 percent to 10 percent as part of a comprehensive approach to the ongoing opioid crisis.
Officials said the cut will take effect immediately and is intended as a one-year arrangement, subject to annual review. Trump indicated plans to visit China in April for further negotiations, with Xi expected to make a return trip to the US soon. Global markets reacted positively to the announcement, viewing it as a sign that both sides are interested in stability and economic recovery after prolonged trade hostilities.
