'We Have a Deal': Trump Announces Trade Breakthrough with China

US President Donald Trump announced on Thursday that Washington and Beijing have reached a landmark one-year trade pact, marking a significant step toward easing economic tensions between the world’s two largest economies. The agreement, finalized after his high-profile meeting with Chinese President Xi Jinping on the sidelines of the APEC Summit in Busan, South Korea, will see the United States reduce tariffs on Chinese imports from 57 percent to 47 percent.

Speaking to reporters aboard Air Force One following the talks, Trump said, “We have a deal,” describing it as an arrangement that will be renewed annually but is expected to last far longer. He explained that the 10 percent tariff reduction came as a result of China’s commitment to take “strong action” against the fentanyl trade, a key concern for the United States. “It was 57, now it’s 47. We reduced it by the fentanyl because I believe they are really taking strong action,” Trump stated, adding that early signs of progress on the issue were already visible.

The US President also confirmed that the long-standing dispute over rare earth minerals had been resolved. “All of the rare earth has been settled, and that’s for the world,” he said, emphasizing that the agreement removes a major obstacle in global trade. He later described the resolution as a “roadblock gone,” suggesting that rare earths would no longer be a point of contention. Rare earth elements, essential for producing high-tech goods and defense systems, have been a central point of friction between Washington and Beijing, particularly after China imposed export controls earlier this month in response to expanded US technology restrictions.

US Trade Representative Jamieson Greer confirmed that the two leaders reached an understanding, under which China will not move forward with its proposed rare earth export controls. However, questions remain about whether Beijing will lift all its existing restrictions. The breakthrough followed weeks of tense negotiations that had rattled global markets and raised concerns about the stability of key supply chains.

The announcement capped a week-long diplomatic tour of Asia that the White House called “remarkable,” highlighting what it described as major economic and diplomatic accomplishments. During the trip, Trump secured billions of dollars in new investments, signed multiple trade and minerals agreements, and oversaw the signing of a peace declaration between Thailand and Cambodia during a stop in Malaysia. In Japan, he and Prime Minister Sanae Takaichi concluded a critical minerals deal they hailed as the beginning of a “new golden age” in US-Japan relations.

In South Korea, Trump met President Lee Jae Myung to finalize a separate trade accord before his much-anticipated meeting with Xi Jinping, which was widely seen as the highlight of his Asia tour. The talks in Busan provided a platform for the two leaders to address months of friction over tariffs, technology restrictions, and mineral exports. The summit concluded with a symbolic handshake between Trump and Xi, signaling a thaw in relations after a prolonged period of economic confrontation.

As Air Force One departed from Gimhae International Airport around 1:15 p.m. local time, Trump reflected on the trip’s achievements. Before boarding, he thanked South Korean officials for their hospitality and praised the outcomes of his engagements across the region. In a social media post, the White House summarized the journey, stating that the President “secured billions in new investment, ended a war, inked multiple trade and minerals deals, met with President Xi, and more. He never stops working for the United States.”

The Busan meeting, held approximately 76 kilometers from the main APEC venue in Gyeongju, capped a week of intense diplomacy aimed at strengthening Washington’s economic and strategic footprint in the Indo-Pacific. As the President returned to Washington, officials described the tour as a defining moment for US foreign policy in the region, reflecting renewed efforts to stabilize global trade while reinforcing American leadership in a rapidly shifting geopolitical landscape.