Overview of the Trump-Xi Meeting
On October 30, 2025, U.S. President Donald Trump met with Chinese President Xi Jinping in Busan, South Korea, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. The approximately 90-minute bilateral discussion focused on trade tensions, including tariffs, fentanyl precursor controls, rare earth mineral exports, and U.S. soybean purchases. Trump described the meeting as "amazing" and rated it a "12 out of 10," emphasizing progress on "almost everything." The outcome was a one-year trade truce, extending deadlines to November 9, 2026, and averting a threatened 100% U.S. tariff escalation set for November 1, 2025.
Current U.S. Tariff Rate on Chinese Imports
Prior to the meeting, U.S. tariffs on Chinese goods had escalated to an average effective rate of 57%, driven by:
- Section 301 tariffs (from Trump's first term, maintained and expanded): 7.5–25% on ~$370 billion in goods.
- Fentanyl-related tariffs (imposed February 2025, raised to 20% in March): Additional duties on ~$500 billion in imports to address precursor chemical flows.
- Reciprocal tariffs ("Liberation Day" duties from April 2025): 10–41% on ~90 partners, including China, layered atop existing rates.
Post-meeting, the U.S. immediately reduced the fentanyl tariff from 20% to 10%, lowering the overall average effective tariff rate on Chinese imports to 47%. This applies broadly to consumer goods, electronics, machinery, and agricultural products, though specific rates vary by Harmonized Tariff Schedule (HTS) code (e.g., 45–47% on many electronics). The reduction is conditional on China's commitments to curb fentanyl exports, resume soybean purchases (~$10–15 billion annually), and suspend rare earth export controls for one year.
| Tariff Component | Pre-Meeting Rate | Post-Meeting Rate | Scope |
|---|---|---|---|
| Section 301 | 7.5–25% | Unchanged (7.5–25%) | ~$370B in goods (e.g., tech, apparel) |
| Fentanyl-Related | 20% | 10% | ~$500B in broad imports |
| Reciprocal ("Liberation Day") | 10–41% (suspended escalations) | Extended suspension; base 10% | ~$600B total Chinese imports |
| Overall Effective Average | 57% | 47% | Weighted average across all Chinese imports |
Key Context and Implications
- Escalation Background: Tensions peaked in early October 2025 when China imposed export controls on rare earths (90% of global supply) and technologies, prompting Trump's 100% tariff threat. Pre-meeting talks in Kuala Lumpur (October 26–27) outlined a framework, finalized during the summit.
- Chinese Concessions: Beijing agreed to delay rare earth restrictions, impose port fee suspensions on U.S. ships, and enhance fentanyl enforcement (e.g., stricter precursor chemical regulations).
- U.S. Gains: Immediate tariff relief eases pressure on U.S. consumers (estimated $50–75 billion annual cost savings) and farmers (restored soybean market access). Trump plans a follow-up visit to China in April 2026.
- Caveats: The deal is transactional and temporary; analysts note China's history of unmet Phase 1 commitments (2019–2020). Geopolitical risks (e.g., Taiwan, semiconductors) could reignite tensions. No resolution on TikTok's U.S. operations or Nvidia chip access.
This truce provides short-term stability but does not resolve structural issues like intellectual property theft or supply chain dependencies. For product-specific rates, consult the U.S. Trade Representative's HTS lookup tool.
