China and the United States enter the early stages of a trade deal
While nothing has been finalized, steps have been taken on both sides to ease tensions
Photo courtesy of Office of the President of the United States/Wikimedia Commons
On Thursday, Oct. 30, 2025, President Donald Trump met with Chinese President Xi Jinping to discuss ongoing tensions between the U.S. and China. They met for the “first time in six years” at a South Korean airbase in a meeting that lasted less than two hours, according to BBC. Both nations seem to be on the way to some level of a trade deal amidst rising tariffs.
President Trump imposed increased tariffs on Chinese goods on Feb. 1, 2024, which China responded to on Feb. 4, 2024 by increasing their tariffs on U.S. products. Throughout the year, higher reciprocal tariffs went into effect, sparking discussion of a trade war.
The White House has described the deal as “a massive victory that safeguards U.S. economic strength and national security while putting American workers, farmers, and families first.”
The U.S. will be ending some of the tariffs on ingredients associated with the creation and distribution of fentanyl; President Trump has blamed China for their “perceived failure to clamp down on the flow of that drug,” as stated by BBC. By Nov. 10, fentanyl-related tariffs will be lowered by 10 percent. Certain Section 301 clauses will also be changed, but it is unclear to what extent yet.
China will suspend their recently announced expansion on rare earths export controls.This announcement also added export restrictions on five new materials: holmium, erbium, thulium, europium and ytterbium, according to Reuters. Rare earth metals like these are crucial in the production of technology, such as defense technology and AI. America is heavily dependent on China for rare earth materials, because China makes up around 90 percent of rare earth processing and 60 percent of mining globally.
China will also start buying soybeans from America, as the American farming population has been harmed by China’s retaliatory tariffs on American farm products. U.S. Treasury Secretary, Scott Bessent, said, “China has agreed to buy 12 million metric tons of American soybeans during the current season through January, down from 22.5 million tons in the prior season…China also committed to buying 25 million tons annually for the next three years as part of a larger trade agreement with Beijing.” American farmers are now preparing for a high demand in soybeans, which comes as a relief. American Soybean Association President, Caleb Ragland, said, "This is a meaningful step forward to reestablishing a stable, long-term trading relationship that delivers results for farm families and future generations.”
The popular social media platform, TikTok, was also a topic of discussion during the meeting. Trump spoke about how there could be an agreement leading the app to come under U.S. control, but China has not publicly agreed with this statement. Bessent said, “I would expect that would go forward in the coming weeks and months, and we'll finally see a resolution to that." President Trump has delayed a ban on the app multiple times since taking office.
For both sides, this is a temporary solution–this deal has yet to be solidified on paper, but it has been said that China and the U.S. are on their way to a formal trade arrangement, according to BBC. Further discussions will occur after the 90-dayreduced tariffs period.